This report, commissioned by the networks of the the Global Investor Coalition (GIC) on climate change, provides an overview of climate-related investment practice by members of the GIC networks, focusing on the integration of climate change considerations into investment processes and actions taken during 2012. It presents the key findings from the annual survey and provides an overview of emerging best practices. It shows that institutional investors are taking note of climate risks and many are taking steps to integrate these risks and climate-related opportunities, such as clean energy and resilient infrastructure, into their investment decisions.
Chapter 3 provides an overview of investors’ perceptions of climate change risk and the firm-wide and portfolio wide commitment demonstrated by investors. Chapter 4 describes how Asset Managers, including internal managers of Asset Owners, implement carbon evaluation processes within asset classes. Chapter 5 explores the drivers and challenges related to low carbon investment opportunities, including renewables, and the extent to which Asset Managers and Asset Owners allocate funds to these investments. Chapter 6 highlights how investors are engaging to raise corporate standards and individually and collaboratively encouraging policymakers to provide a policy framework that is supportive of long-term investment decision-making and the move to a low carbon economy. Chapter 7 provides an overview of whether and how Asset Owners include climate change considerations in the selection and monitoring of external Asset Managers. And chapter 8 provides an overview of how Asset Managers and the internal managers of Asset Owners integrate climate change considerations into investment analysis or due diligence processes across asset classes, including Real Estate, Infrastructure and Commodities.