Investors holding $41 trillion demand action on climate — now
June 10, 2021 at 04:23
New York (CNN Business) Investors managing more than $41 trillion in assets are loudly calling on world leaders to immediately step up their climate game if they don't want to miss out on a wave of clean energy investment.
Investors can't address the climate emergency on their own, but governments can't reach climate solutions without investors."
The letter, signed by Fidelity, State Street and other influential asset management firms, marks the strongest call yet from investors urging governments around the world to take bolder steps to fight the climate crisis .
"These gaps — in climate ambition, policy action and risk disclosure — need to be addressed with urgency," the signatories wrote in the letter.
The not-so-subtle warning is that countries that drag their feet risk being left behind as investors send their money elsewhere.
"Investors can't address the climate emergency on their own, but governments can't reach climate solutions without investors."
'Our house is burning'The debate over how to respond to the climate crisis comes amid rising awareness from the public, business leaders and regulators about the consequences of climate change.
Federal Reserve Chairman Jerome Powell said last week "there is no doubt" that the climate crisis poses "profound challenges for the global economy and certainly the financial system."
European Central Bank President Christine Lagarde urged fellow central bankers to acknowledge how the climate crisis could cause "financial instability" and make it difficult for central banks to manage the economy.
Tobias Adrian, director of the IMF's monetary and capital markets department, told CNN Business the climate crisis could "absolutely" ignite a financial crisis.
Mindy Lubber, the CEO of Ceres, a sustainability nonprofit that helped organize the investor letter, said investors are aware of the substantial risks in getting climate policy right.
"Investors know that the impacts of the climate crisis are systemic financial risks," Lubber said in a statement, "and will worsen, if left unchecked."