CLIMATE ACTION FOR INVESTORS

How private and public financial institutions should align their investments and services towards low emissions and climate-resilient development.

© Shutterstock / Leung Cho Pan / WWF

Private and public financial institutions should align their investments and financial services with pathways towards low GHG emissions and climate-resilient development, in line with article 2.1c of the Paris Agreement.52 This implies that they should:

  • Adopt policies that require all oil and gas companies in which they invest and/or for which they provide financial services, to align with the 1.5°C threshold.

  • Identify companies whose business model can be influenced through effective engagement, but at the same time recognise that the oil and gas sector as it currently exists will eventually need to be phased out in light of climate constraints. Investors must phase out support for the oil and gas companies that are the least prepared, or not able or willing to shift their business towards zero-carbon businesses, and gradually tighten their criteria to align with the ever more stringent carbon constraints of a 1.5°C compliant transition.

A stable climate is a precondition for nature to thrive, directly affecting WWF’s ability to achieve its mission. managing the rapid transition away from fossil fuels is the most crucial element of achieving the Paris Agreement.

WWF is a globally respected and well-known organisation, with the power to influence the public, governments, and non-state actors and should take advantage of these capabilities. WWF believes that governments, financial institutions, energy companies, the labour movement, and other NGOs can all be positive actors in the transition away from fossil fuels.

Given the power of WWF to exert change, WWF will:

  • Have an outspoken and constructive voice in the public discourse around the need for climate leadership for the needed transition away from fossil fuels.

  • Use its best knowledge and skills to be an ambitious driving force in transforming countries, businesses, and financial institutions to a 1.5°C trajectory.

  • WWF may engage in dialogues with oil and gas actors with the objective to exert change of the oil and gas actors’ activities, investments, and strategies in line with this policy, observing valid WWF corporate engagement policies and branding guidelines and caring for WWF ́s reputation considering specific national and international circumstances.

© David Tong / WWF-New Zealand