Climate change ‘is a primary focus for many investors’

UBS says investment managers worth $3tn cite climate change as their main environmental, social and governance concern

Festival Net Zero 2021

Climate change

Climate change is a primary focus for many investors.

That’s the verdict from a new report published by financial services firm UBS, which says investment managers responsible for a collective $3 trillion (£2.3tn) cite climate change as their number one environmental, social and governance concern.

The study shows proportion of financiers who believe this has doubled since 2016 and illustrates how US institutional investors generally regard climate change and carbon emissions as the most important environmental issue.

It notes the rate of climate disclosure among corporate firms and investors is improving and suggests this is rapidly becoming a critical factor for success.

UBS states that both asset managers and asset owners must increasingly engage with companies to influence their business models and activities in the direction of becoming more sustainable in the long-term.

It says by bringing together experts with backgrounds in risk management, investment and environmental, social and governance areas, business outcomes are more likely to actually prove both actionable and investment-relevant.

The report reads: “Clearly, climate change is one of the most pressing concerns which investors currently face – and for investee companies, climate transition is a material consideration.”

Latest Podcast