Investor statement in support of Climate Action 100+

As asset owners representing USD $5.5 trillion in assets, we remain deeply concerned about the investment risks posed by climate change to the economy, the markets and our portfolios. Investors encouraging companies to adopt ambitious and thoughtful plans to address climate-related risks aligns with our economic interests as long-term and diversified stewards of capital. Working collaboratively with other investors through Climate Action 100+ is an effective and efficient way to address both the specific and systemic risks to our investments posed by climate change, which is why we remain fully committed to participating in this valuable initiative.

As the investment risks relating to climate change continue to increase, we hope to emphasize three clear messages that the investment community remains committed to addressing:

• Further action to address systemic risk is essential: Virtually all companies—and thus investors—are affected by climate risk and the transition to a net zero emissions economy. Managing climate-related risk therefore requires action by a coalition of the world’s governments, businesses, investors and communities. All investors should be able to articulate clearly how they are addressing climate change as a systemic risk.
• Addressing significant investment risks, including climate risk, is a fiduciary imperative: All investors, including asset owners and asset managers, have an obligation to protect the value of their assets for the beneficiaries of their investments. Different types of asset owners and managers may approach addressing climate risk differently, but all should conduct their fiduciary duties with a factual understanding of risk. It is important for all investors to provide clarity and transparency around how they are meeting their fiduciary duty to address climate-related investment risks.
• Collaborative engagement remains a vital tool: Conducting climate engagements collaboratively, in keeping with all regulatory and legal requirements, enables greater efficiency and effectiveness in managing risks for investors of varying size and across different geographies.

We recognize that there are, and will continue to be, complexities and nuances in the path to achieving a climate resilient future. However, these cannot preclude those committed to addressing climate-related investment risk from taking the action needed to protect the investments that provide security for our beneficiaries.