The Institutional Investors Group on Climate Change (IIGCC) is calling for input on its climate resilience investment framework.
The Climate Resilience Investment Framework aims to address two levels of risk by integrating physical risk and opportunities into the investment process, using asset allocation to change physical climate risk exposure in portfolios, using stewardship and engagement activities to address physical risk, encourage investment in solutions addressing physical climate risk, engaging with policy and enhancing disclosure and reporting.
The structure of the framework is outlined in the Working towards a Climate Resilience Investment Framework paper, and is accompanied by a commitment from investors to support net zero, set decarbonisation targets and develop strategies to deliver against those goals – all of which are in line with the Net Zero Investment Framework.
Stephanie Pfeifer, CEO of IIGCC, said: “With a fiduciary duty to manage risk on behalf of their clients, the fundamental need for investors to understand the impact of physical climate risks to their investment portfolios has risen markedly.
“Critically, not only does the proposed Climate Resilience Investment Framework aim to help investors better understand their exposure to physical climate risk, but it also seeks to promote investor action that will build climate resilience at an asset, portfolio and wider societal level. We look forward to collaborating with interested parties on the future development of the framework.”
The deadline or feedback is 14 October.