Dec 11, 2012 - 11:30am
The Asset Owners Disclosure Project (AODP) released the first ever global climate investment index showing how the world’s biggest investors, including superannuation funds, are managing climate risk.
The global index was built following information requests to the world’s 1,000 largest asset owners including over 800 pension funds, 80 insurance companies, 50 sovereign wealth funds and 50 foundations/endowments.
The survey focused on five main categories – transparency, risk management, investment chain alignment, active ownership and low carbon investment. It includes asset owners from 63 countries, in all regions of the world.
The global report finds a crisis of transparency following the assessments of more than 300 funds from publicly available information with 91 funds having absolutely no public information available.
Other key findings include:
- Only South Africa’s Government Employees Pension Fund (GEPF) has calculated its exposure to fossil fuel reserves via the balance sheets of its investee companies. For this and other reasons GEPF is ranked second and is the only other AAA rated fund.
- The ability of funds to respond to and to build capacity around climate change is not affected by size - in Australia, Local Government Super with $6.5bn under management is a real leader, while the Future Fund with $80bn didn’t even respond due to “inadequate resources”.
- Leaders have a higher instance of walking the talk – putting their money where their mouth is and investing in low-carbon investment opportunities – as well as more frequently and publicly exercising their voting rights as shareholders and having a better grasp on how to monitor their exposure to climate change related impacts.
See link below for the full report. You can also access the press release for the report here.
Dr John Hewson, Chair of AODP and former leader of the Liberal Party of Australia and John Connor, CEO of The Climate Institute discuss the results of the AODP Global Climate Index:
Curious about the cover photo? Michael Hall, Creative Fellow of The Climate Institute, tells us about this image of MV Pasha Bulker on his blog - Climate Change Refocused.
The AODP was originally developed in 2008 as an initiative of The
Climate Institute and while it is now a separate entity, the two
maintain a close working relationship.