$39 Trillion Investors Urge Government to Phase Out Fossil Fuel Program

Some – but not all – of the high-profile fund moves come ahead of the next round of global climate talks in Egypt in November. This year’s letter is a more ambitious plea to authorities yet, with additional calls for action against methane pollution and more funding for poor countries, its supporters said.

The 2022 Global Investor Report for Governments on the Climate Crisis, organized by Investor Agenda, a group of investor-focused groups that includes many of the world’s largest fund managers, is the 13th published.

“Investors take action because it is allowed by law, but in many cases they have a key fiduciary duty to ensure they can generate long-term returns and take advantage of the opportunities associated with the transition to an economy with net zero emissions,” the statement said.

Other demands from investors include scaling up low-carbon energy systems; Implementing carbon pricing mechanisms that increase over time; Drawing up new or more ambitious plans to end deforestation.

A total of 532 investors have signed up to the latest iteration, including UBS Asset Management, Amundi SA and Federated Hermes.

However, none of the top three US index fund managers — BlackRock, Vanguard and State Street Corp — signed the letter.

The reluctance comes at a time when environmental, social and governance issues, or ESG, investments are under increasing pressure in the US.[L1N3011D2]

Representatives for BlackRock declined to comment, while Vanguard did not respond to questions.

A State Street representative, whose asset management division signed off on the Investor Alliance statement last year, declined to comment.