Investors, capital markets and the wider finance community
We have less than ten years to transform the global economy if we have any chance of addressing the environmental and social emergencies we face. The global financial system has an invaluable role to play to mitigate and avoid these crises - by significantly and rapidly increasing the volume of finance directed towards activities aligned with achieving a 1.5°C future and the Sustainable Development Goals (SDGs).
To do this, we must ensure the people in charge of financing and investment across the global economy integrate environmental, social and governance (ESG) considerations into all aspects of financing and investment decision making. A4S uses its networks, convening power and technical credibility to inspire, transform and scale up efforts by capital market leaders to remove barriers, create steps to accelerate change and enhance technical capability to integrate ESG into financial decision making.
Opportunities
| The top 300 pension funds worldwide represent US$18.1 trillion in assets under management - an industry-wide shift to embed ESG considerations into default funds would represent a significant step on the pathway to a net zero emissions economy. |
| Rising capital market engagement in climate change is driving a seismic shift in capital allocation with renewable power to become the largest area of spending in the energy industry in 2021. |
| In 2019, $4.27 trillion in assets was reached through passive funds tracking Market Cap weighted indices, surpassing actively managed fund investments for the first time – passive broad market indices could play a hugely significant role in redirecting flows of finance and investment towards sustainable outcomes and away from unsustainable ones. |
| Each of the 23 largest banks in the world have more than US$1 trillion of assets on their balance sheet - their sheer size means that decisions made have significant impact on outcomes achieved. |
A4S Capital Market Initiatives
A4S ASSET OWNERS NETWORK
Our Asset Owners Network enables chairs of pension funds, their pooling partners, investment committees and endowments to come together to discuss key ESG considerations in a confidential setting.
Click here to find out more about the Asset Owners Network.
To find out more about joining this network please email us at info@a4s.org.
CONVENING KEY ACTORS
A4S provides an enabling environment for key players across the investment chain to come together and explore commitments to action. With formats including large summits, closed door peer-to-peer sessions, and co-partner led events, A4S supports participants in exploring the role that they can play in helping to limit global warming to 1.5°C.
SHAPING WHAT GOOD LOOKS LIKE
A4S produces resources including detailed guides, lighter touch ‘Top Tips’ guides, case studies and podcasts. These give those within the investment community practical steps on how to embed ESG into investment strategy and processes, with a focus on peer to peer knowledge sharing. Examples include:
HOW THE CAPITAL MARKETS COMMUNITY CAN GET INVOLVED
There are many ways for all actors across the investment chain to get involved in shaping the future of finance:
- Read and share various resources in our knowledge hub about the practical steps that investors can take >
- As a pension fund trustee or CFO of a financial institution, contact us about joining our Asset Owners Network or CFO Leadership Network >
- Share your story – if you have a practical example of embedding ESG into your strategies and investment decision making then let us know >
- As a pension fund chair or trustee, sign our ‘Pension Fund Chair Net Zero Statement of Support’ >
