COP21: Allianz and ABP join climate investment group

Madeleine Cuff
clock

Two of the world's biggest institutional investors join the Portfolio Decarbonisation Coalition

Institutional investment giants Allianz and ABP have joined a group of investors committed to tackling climate change by decarbonising their assets and integrating carbon information into portfolio designs.

The news was announced yesterday at a fringe event during the UN climate change conference in Paris. The group, dubbed the Portfolio Decarbonisation Coalition (PDC), now consists of 25 investors with $600bn under management - far more than the Coalition's original target of $100bn.

PDC members have all committed to withdraw capital from carbon-intensive companies, projects and technologies in each sector, reinvesting the money into carbon-efficient assets. They have also committed to mapping the carbon footprint of their assets and incorporating this information into their portfolio structures.

Oliver Bäte, chief executive of Allianz, said climate change requires collective action and continued commitment. "Our knowledge of risk, our financial resilience and long-term investment horizons enable us to offer effective support for climate protection while making the most out of long-term opportunities for our clients," he said in a statement. "Delaying action will be costly and will damage growth prospects."

The news follows Allianz's pledge late last month to move €4bn from coal assets into wind power as part of its ambition to divest completely from the dirtiest fossil fuels.

Corien Wortmann-Kool, chair ABP's board of trustees, said providing investment managers with carbon budgets alongside risk and return budgets will allow the investor to cut its carbon footprint while delivering good returns for its clients.

The success of the PDC project is one of a growing number of signals that climate change is becoming critical to shareholder interests. Last week, Mark Carney, chair of the Bank of England and the global Financial Stability Board, announced the creation of a new task force on climate-related financial disclosures in a move designed to help investors better assess the climate risk faced by listed companies.

This article is part of BusinessGreen's Road to Paris hub, hosted in association with PwC.

More on Carbon Accounting

Over 600 financial firms now committed to PCAF carbon reporting standard

Over 600 financial firms now committed to PCAF carbon reporting standard

Industry-led Partnership for Carbon Accounting Financials reveals it has secured signatories representing more than $100tr in financial assets

Michael Holder
clock 30 May 2025 • 2 min read
Survey: UK C-suite leaders 'overconfident' about meeting value chain emissions reporting requirements

Survey: UK C-suite leaders 'overconfident' about meeting value chain emissions reporting requirements

New study highlights potential disconnect between company's goals and their ability to tackle Scope 3 emissions and comply with more demanding reporting requirements

clock 30 May 2025 • 3 min read
CDP: More than 100 global cities awarded top marks for climate action

CDP: More than 100 global cities awarded top marks for climate action

Non-profit disclosure platform's annual 'A List' for cities, states and regions indicates climate action is increasingly engrained in urban areas

clock 29 May 2025 • 2 min read