Investment industry calls on G7 to take further action on climate change

The UK investment management industry is calling on the G7 countries to do more to tackle climate change by committing to improve companies’ reporting on the climate-related risks they face.

The proposed changes would see the world’s largest economies implement mandatory climate-related risk reporting for companies against a standardised set of principles. With UK investment managers investing £3.7trn in overseas equities, governments and non-sterling bonds, it is vital that such risks are reported in a clear and consistent manner, so managers can help companies transition to a more sustainable future and take informed investment decisions on behalf of savers.

In a letter sent to the UK ambassadors and High Commissioners of the countries taking part in this year’s G7 Summit, the Investment Association (IA), which represents the UK’s £8.5 trillion investment management industry, outlined the following measures it wants G7 countries to agree to at the upcoming summit:

  1. Support for the IFRS’ Sustainability Standards Board to work at pace to develop sustainability reporting standards and increased cooperation between national regulators to endorse and implement these standards.
  2. For national regulators to commit to implementing mandatory economy-wide reporting on international Task Force on Climate-related Financial Disclosures (TCFD).
  3. International common standards to be agreed on green gilts by governments and national regulators.
  4. Governments to set out at a high level sector specific pathways to meet the Paris Agreement goals and prioritise providing further detail to reduce the risk of stranded assets.

Chris Cummings, Chief Executive of the Investment Association said: “The meeting of the G7 is a prime opportunity for the world’s largest economies to take a coordinated, global approach to tackling climate change. As an industry which invests in companies around the world on behalf of both UK and overseas savers and investors, investment managers have a vital role to play in the shift to a more sustainable global economy. Ensuring high-quality and comparable data on the risks that companies face from climate change is key to achieving this and meeting the net zero targets.”

As part of its commitment to tackling climate change, the IA has also publicly stated its support for the Race to Zero and Net Zero Asset Managers initiative. To date, investment managers with more than £5trn of assets under management in the UK have made these net zero commitments.

To view the letter click here

For further information, please contact:

Katie Martin, Head of Communications: [email protected]

T: +44 (0)20 7269 4655

Helen Ayres, Communications Manager: [email protected] 

T: +44 (0)20 7269 4620

David Parton, Communications Executive: [email protected]

T: +44 (0)20 7269 4625

IA press office: [email protected]

T: 020 7269 4696

About the Investment Association (IA):

  • The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £8.5 trillion of assets and the investment management industry supports 113,000 jobs across the UK.
  • Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
  • Our purpose is to ensure investment managers are in the best possible position to:
    • Build people’s resilience to financial adversity
    • Help people achieve their financial aspirations
    • Enable people to maintain a decent standard of living as they grow older
    • Contribute to economic growth through the efficient allocation of capital.
  • The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
  • The UK is the second largest investment management centre in the world, after the US and manages over a third (37%) of all assets managed in Europe.