COP21: Coalition Overseeing Decarbonization of $230bn Assets under Management

The Portfolio Decarbonization Coalition (PDC), which aims to support greenhouse gas emissions cuts by engaging institutional investors committed to decarbonizing their portfolios, is now overseeing the decarbonization of $230 billion in Assets Under Management (AUM), dramatically surpassing its target of $100 bn.

Hermes Investment Management in the UK, MN Services in the Netherlands, BNP Paribas Investment Partners, Humanis, and Caisse des Dépôts (CDC) in France today joined the coalition, bringing the number of members to 23, managing total assets of $2.2 trillion.

Announcements of new members are planned for COP 21, where 190 nations will convene in Paris with the aim of negotiating a universal agreement on climate. The new members will significantly increase the total commitments to decarbonization.

The increasing membership of the PDC is a clear signal that a growing number of leading investors are committed to reducing the carbon risks and impacts of their portfolios, and playing a key role in tackling climate change. UNEP Executive Director Achim Steiner said, “The success of the PDC is a clear signal that more and more leading investors are recognizing the inherent risk that climate change poses to their portfolios. By aligning their portfolios with the low-carbon economy, they are playing a key role in the climate action the world wants to see. Exceeding the $100 billion target is a significant milestone, and I hope the leadership of the coalition members inspires other investors to join this great effort.”

Expected to attract close to 50,000 participants, COP21 will highlight mounting concerns surrounding the costs and disruptive impacts that climate change will have on the global economy.

With the transition to a low-carbon and climate-resilient economy requiring trillions of dollars in finance and significant changes in corporate behaviour, financial markets and the investment community play a vital role in catalysing solutions for a sustainable future.

Co-founded by the United Nations Environment Finance Initiative (UNEP FI), the fourth National pension fund of Sweden, AP4, Europe’s largest asset manager Amundi and CDP, the international not-for-profit organization holding the largest global collection of corporate environmental data, the PDC was launched at UN Secretary-General Bank Ki-moon’s Climate Summit in September 2014.