Mena SWFs to build climate change framework

Four of the biggest sovereign wealth funds (SWFs) in the MENA region have collaborated to launch a framework to promote greater use of climate change analysis in the management of large and long-term asset pools.

The framework was produced by the One Planet SWF Group which includes the Abu Dhabi Investment Authority, Kuwait Investment Authority, Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority. The New Zealand Superannuation Fund and Norges Bank Investment Management are also members.

The voluntary framework is intended to use climate change research “to foster a shared understanding of key principles, methodologies and indicators related to climate change” and “enhance their investment decision-making frameworks to better inform their priorities as investors and participants in financial markets”.

In a statement made at the One Planet Summit in Paris, the working group stated that “long-term institutional investors will be able to make use of this framework in the execution of their mandates and investment objectives”.

The framework states that sovereign wealth funds expect company boards to understand the consequences of their business practices for climate emissions and to set clear priorities for the company to address climate change issues.

©2018 funds global mena

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