A new report released today, just days ahead of the United Nations Climate Change Conference (COP 30), with data from more than 220 of the world’s largest asset owners and asset managers, finds that the financial materiality of climate change and environmental risk is now well-understood by investors.
The Global State of Investor Climate Action report reveals that many of these investors are taking a range of actions to integrate climate risks and opportunities into investment, corporate engagement, policy advocacy, and disclosure practices. However, significant gaps remain, and regional disparities in ambition, action, and transparency risk undermining global progress on managing climate-related financial risks and opportunities.
Access the report (microsite)
The report, developed by the Founding Partners of the Investor Agenda, analyzes global investor climate commitments and disclosures using hybrid methodology that combined data analysis of publicly available disclosures and reports with insights gathered through interviews with investors. It explores responses around a few key areas, including how financial materiality drives climate strategy, including goal-setting and transition planning, investment solutions and opportunities, and investor and policy engagement practices, among other areas.
Investor case studies
It features case studies from investors demonstrating real-world investor momentum on climate action. But the gaps outlined in the report show many investors still lack credible interim targets, transition plans, and progress reporting. It highlights the urgent need for deeper ambition, wider participation, and stronger alignment from multiple stakeholders to embed climate, nature, and the just transition into core investment practices.
Key findings:
- Climate-related risks are understood by investors and assessed as part of good governance – 75% of investors included in the research reported assessing the financial risks and opportunities that climate poses for their portfolios, and moreover, 75% have implemented board-level oversight of their climate-related strategies.
- Global interest in climate solutions investment is high, but barriers to scaling up and greater implementation remain – 70% of investors in the study reported that they have made climate solutions investments, yet only 30% reported to have committed to increasing such investments.
- Investors are engaging companies on climate issues, while many are also urging policymakers to mitigate climate risks – Nearly two thirds (73%) of investors surveyed for the report are engaging investees on climate issues; 43% also reported to be engaging with governments in some way regarding climate as a financial and economic issue.
- Transition planning and portfolio emissions tracking are becoming mainstream –65% of investors surveyed revealed that they track and disclose at least one portfolio emissions metric, 56% also reported that they disclose transition plans or elements of their plans, and more than half (51%) said they have adopted targets for net zero portfolio emissions by 2050.
- Nature and just transition are gaining significant attention – 60% of investors in the report include nature-related disclosures in their transition plans; and 36% disclose just transition considerations in their investment strategy in their public disclosures.
Addressing climate change and environmental risk and ensuring continued progress requires action from investors, governments, and wider stakeholders. The Founding Partners of the Investor Agenda provide key resources, including the Investor Climate Action Plans (ICAPs) Expectations Ladder for increased action and the 2024 Global Investor Statement to Governments on the Climate Crisis highlighting policy priorities for governments. Going forward, the Investor Agenda Founding Partners will continue to support investors with tools for transition planning and policy engagement aligned with their fiduciary duties. Supporting quotes from the Founding Partners of The Investor Agenda:
Rebecca Mikula-Wright, CEO, AIGCC:
“Investors are acting on climate risks because they’re real and they’re already material to financial returns.
But, if governments want to meet their development and climate goals, we’ll need to accelerate big investments into sustainable energy, industry, climate resilience, and the next generations of climate solutions, especially in the Asia Pacific.
The negotiators at COP30 have a unique and critical opportunity to show the market they’re serious about fossil fuel phase down and adaptation finance, and the stronger the signal the more confidence investors will have to support sustainable development.”
Mindy Lubber, CEO and President, Ceres:
“Our report confirms institutional investors continue to prioritize climate action. From risk management to transition planning to investing in climate solutions, we’ve seen momentum across the global investment community. Investors must now look to increase the pace and scale at which they act to accelerate the transition to a cleaner, more resilient economy.”
Stephanie Pfeifer, CEO, IIGCC:
“This research highlights how many investors are responding to the financial risks and opportunities posed by climate change. While the transition to a decarbonised global economy could become a defining investment trend over the next decade and beyond, it hinges on an enabling policy and regulatory environment. COP30 presents a further opportunity to advance this agenda, which is why we’re calling for clear, pragmatic, and decisive policy frameworks that unlock climate investment flows at the pace and scale needed to address systemic climate-related financial risks.”
David Atkin, CEO, PRI:
“Climate-related considerations are now widely understood as financially material by institutional investors, who have deeply embedded them in their decision-making. Looking ahead, investors are united in their support for clear, predictable policy frameworks that protect long-term investments from climate risk and allow them to allocate capital confidently to the transition. Where governments provide clear policy signals, investors have demonstrated they will respond decisively.”
Eric Usher, Head, UNEP FI:
“With the 10th anniversary of the Paris Agreement and COP30 on the horizon, this report underscores both the progress made and the critical gaps that remain in aligning global financial systems with the realities of climate change. While it’s encouraging to see many investors integrating climate risks and opportunities into their strategies, the disparities in ambition and action across regions highlight the urgent need for greater alignment. Investors have a pivotal role to play in driving the transition to a net-zero economy and must step up ambition.”
To support data collection and analysis at scale for the Global State of Investor Climate Action report, the Founding Partners partnered with Manifest Climate, an AI-powered platform that assesses climate-related disclosures across a wide range of corporate and financial institutions. Investor disclosures were analyzed against several leading global frameworks, including the ICAPs Expectations Ladder and Guidance.
Access the report (microsite)
Editor’s note:
Accelerating and Scaling Up Investor and Government Climate Action
On 6th November, the Founding Partners will host an in-person session at PRI in Person at 4:00 p.m. local time (GMT-3) in São Paulo, Brazil. The event will showcase the findings of the Global State of Climate Action report, as well as incorporate expert perspectives on:
- Actions to address climate risk and opportunities, corporate engagement, investor disclosure, and policy advocacy; and
- Climate-related trends, including expectations on key COP30 outcomes, such as private finance mobilization.
The event is open to journalists. Journalists interested in attending should register here.