PARIS | May 19, 2022–– The Investor Leadership Network (ILN) convened its Climate Change Advisory Committee today for a working meeting to identify the most impactful portfolio management and investment strategies to move the global economy through a sustainable transition.
For the first time since 2019, members of the ILN Climate Change Advisory Committee met in person today at Natixis Investment Managers’ offices in Boston and Paris for a full-day workshop on transition investing. ILN members presented their respective organizations’ most effective practices in using capital allocation to guide companies to transition to lower-emitting business operations. Dr. Ben Caldecott, founding Director of the Sustainable Finance Programme at the University of Oxford, briefly joined the workshop for a talk on how institutional investors can impact strong transition plans, as well as the impending risks to companies who don’t have one.
Between these presentations, the Advisory Committee discussed how institutional investors could influence the reduction of fossil fuel consumption, in addition to production; how they could prepare entire industries and value chains to decarbonize, in addition to individual assets; and how they can factor macroeconomic transition risks into their portfolio valuations. ILN’s current climate change resource partners at KPMG facilitated the sessions.
Later this year, ILN’s Climate Change Advisory Committee will turn the best practices and challenges shared in these meetings into an investor resource on transition investing. Discover ILN’s previous climate change resources on TCFD integration, climate change mitigation, and physical risk assessment here.
Maria Montero, Co-Lead of ILN’s Climate Change Advisory Committee and a Principal in the Sustainable Investing group at CPP Investments, said, “Between all of our organizations, we have different mandates and have different strategies, but at the end of the day, we are all facing the same challenge of understanding the impacts of climate change from an investor’s perspective. Meetings like these are important as they allow us to find the best commonalities between our strategies and then share those with the broader industry in due course.”
Vincent Felteau, Senior Director of Responsible Investment, Private Markets at PSP Investments, added, “I appreciate how everyone on the Advisory Council is working to openly share insights and perspectives on implementing their climate-aware investment strategies. Being collaborative and solution-oriented accelerates the shared progress we can collectively make.”
“Decarbonizing the global economy unfortunately does not have a fast and simple solution. ILN Climate Change Advisory Committee members are incredibly mindful about how they can most justly and impactfully exercise the power of their capital in the transition to a definitive net zero,” said Marielle Brunelle, ILN’s Manager of Advocacy and Communications.