Policymakers should attempt to bring asset owners and managers together to galvanise investment in clean energy and natural capital, according to the Investment Association (IA). In a new report entitled ‘Financing Transition’, the UK asset management industry body laid out a raft of actions the government can take to attract more finance to green technologies. Better communication and alignment of goals between the ultimate owners of assets, like pension and sovereign wealth funds, and the groups that manage their investments, must be central to this effort, the IA said. The report also urged policymakers to adopt sustainability standards like the International Sustainability Standards Board (ISSB), design clear transition plans, improve public-private cooperation, and improve standards for scenario analysis. The report comes a month after Labour won a landslide victory in the UK general election on a more ambitious climate platform than that of the previous Conservative government. Labour’s plan includes mobilising more pension money to fund the green transition. “Our latest report underscores the UK investment management industry’s commitment to the goals set out in the Paris Agreement and the importance of clearly communicating the work our industry is doing to unlock the significant capital needed to support the green transition,” said Paul Scaping, Public Policy Specialist at the IA. Long-term risks and opportunities associated with climate change and other sustainability issues are central to investors’ fiduciary duty, he said.
