global perspectives

LOIM becomes participant in Climate Action 100+

January 21, 2020

Rebeca Coriat

Head of Stewardship

The physical manifestations of an already-damaged climate continue to increase and draw urgent attention to the need for a rapid transition towards a net-zero emissions, sustainable economic model. Investors have trillions of dollars at stake in this transition, which needs to happen at an unprecedented speed and scale. Achieving the goals of the Paris Agreement¹ requires a concerted effort, and continued investment, by policy makers, market participants, consumers and investors alike.

Investors have a vital role to play in helping to accelerate this transition by using their capital and influence to ensure the world’s largest corporate greenhouse gas emitters take the necessary action on climate change. At LOIM, we believe it is essential to address carbon-intensive, but hard-to-abate, sectors given the substantial risks and opportunities they present to economic and financial market stability, and thus to investment portfolios. These sectors will continue to be structurally important in a net-zero economy so indiscriminately excluding them from portfolios is not a viable option.

By engaging with these companies to encourage the adoption of more sustainable business models aligned with the Paris Agreement, to strengthen climate-related financial disclosures and improve governance on climate change risks, investors are better able to ensure their portfolios are well positioned for the climate transition. We believe this is essential in carrying out our fiduciary duty as asset managers and delivering clients’ long-term objectives.

This is why LOIM has signed up to participate in the considerable work Climate Action 100+ is already doing in driving the business transition.

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¹ The Paris Agreement central aim is to strengthen the global response to the threat of climate change by keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.

important information.

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