Investors controlling half the world’s managed assets – about $50 trillion – want governments to phase out coal power worldwide and put a price on carbon pollution.
The group also thinks it’s time for governments to end subsidies for fossil fuels, in order to do more on climate change and for the world to meet the Paris targets to reduce pollution.
The Investor Group on Climate Change is Australia’s voice in the group, as it holds about $2 trillion worth of assets across the nation and New Zealand.
IGCC CEO Emma Herd says it’s a crucial point in time for investment groups to work together and drive change.
“By working with our peers globally and across the regions, we can scale-up ambition and action to tackle climate change and deliver on the promise of the Paris agreement,” she said.
The group includes 515 institutional investors, and has made the calls for greater climate action on Thursday in its investment agenda.
“The global shift to clean energy is under way, but much more needs to be done by governments to accelerate the low carbon transition and to improve the resilience of our economy, society and the financial system to climate risks,” the investors wrote.
Current global emissions reduction commitments aren’t enough to prevent the world from warming by more than 1.5 degrees, which will have disastrous consequences, the investors further warned.
Australia’s greenhouse gas emissions reduction goal is currently 26 to 28 per cent on 2005 levels by 2030, but pollution has continued to rise over the last five years.
The investment agenda comes as leaders prepare to face calls from the United Nations to do more on reducing emissions.
Despite being in the US, Prime Minister Scott Morrison is not attending the climate summit on Monday and Australia will instead be represented by Foreign Minister Marise Payne.
UN Secretary-General António Guterres wants the Paris targets to be doubled and for nations to be carbon neutral by 2050.
“I am also asking all investors to scale-up green ventures, to increase lending for low-carbon solutions and to stop, in effect, financing pollution,” he said.