Brian Minns, CFA, is set to speak at the Climate Risk and Returns Conference hosted by CFA Institute, taking place from 20–21 April 2023 in the vibrant city of New York.
Building Partnerships for a Low-Carbon Future
At University Pension Plan (UPP), we recognize our responsibility as institutional investors to prioritize our beneficiaries’ interests while ensuring sustainable financial, social, and environmental systems shape our investment strategies. Embracing a net-zero approach, we aim to extend our impact beyond our portfolio and contribute to a global transition towards lower emissions through collaborative efforts in the financial community.
Moreover, the transition to net zero offers investment opportunities that promote resilience, competitiveness, and sustainable practices, aligning profitability with environmental conservation. By engaging in collaborative initiatives with global investors, we can share expertise, leverage resources, and enhance our collective influence to drive meaningful change in the economy.
Joining forces with asset owners enables us to catalyze systemic change and fulfill our fiduciary duty collectively, mitigating risks and maximizing return potentials.
Addressing Systemic Risks through Collective Efforts
Direct engagement by investors with companies and managers is essential in steering them towards a resilient, low-carbon future. Setting expectations, improving disclosures, and fostering better climate-related practices play a critical role in supporting the transition pathway and making informed investment decisions.
By participating in finance-driven groups like Climate Action 100+ and Institutional Investors Group on Climate Change (IIGCC), investors ensure alignment, consistency, and accountability across their activities and drive collective change towards sustainability within the industry.
Advocating for Value Protection and Enhancement
Through advocacy with policymakers and regulators, investors can shape regulatory frameworks supportive of beneficiaries’ interests and a well-managed climate transition. Collaborative efforts with organizations such as the UN-convened Net-Zero Asset Owner Alliance (NZAOA) and the Ceres Investor Network on Climate Risk and Sustainability amplify investor voices and influence policy decisions globally.
Engagement in policy working groups further allows investors to define and promote governance best practices, enhancing transparency, accountability, and disclosure to mitigate risks and safeguard investment values.
Strength in Unity: Embracing Change Together
Amid evolving climate regulations, investors face new risks and opportunities that require collective efforts to navigate effectively. By joining investor alliances, collaborating on policy advocacy, and sharing knowledge, investors can manage risks and seize opportunities in a rapidly changing landscape.
Investor groups, such as the International Sustainability Standards Board (ISSB), are instrumental in developing global standards for climate impact reporting, ensuring transparency and combating greenwashing. Collaborative approaches empower investors to stay informed, contribute to policy developments, and drive impactful change on a global scale.
As the financial community navigates the challenges and prospects of the low-carbon transition, collective action remains key to shaping a sustainable future and achieving net zero emissions.
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The views expressed in this post are solely those of the author and do not constitute investment advice. Opinions expressed do not necessarily reflect the views of CFA Institute or the author’s employer.
Image credit: ©Getty Images / JamesBrey
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