Investors outline expectations of governments ahead of COP27

A group of 602 investors representing $42tn in assets under management have written a statement to governments outlining their expectations ahead of COP27 later this month. The statement calls on governments to focus on short-term strategies including ensuring that their 2030 nationally determined contributions (NDCs) and emission-reduction targets align with the 1.5°C goal. The letter states: “If their targets are not aligned, governments must enhance and strengthen their 2030 targets before COP27, taking into account different national circumstances.” The 2030 targets, according to the investors, would necessitate credible progress on addressing fossil fuel subsidies, thermal coal capacity and deforestation among other issues. In addition, the investors argue that strengthening mandatory disclosures in the financial system is crucial. One of their expectations is that governments should require “mandatory TCFD-aligned reporting for the largest companies and financial institutions to report on climate-related risks and opportunities, backed by a robust global taxonomy”.