It's time for climate change investing to be put into action

The author contends that while many financial firms have made net-zero pledges, they lack the concrete action and public policy support necessary to achieve them. The text highlights a gap between the $37 trillion committed to the Net-Zero Asset Manager Initiative and the $5.35 trillion in assets supporting US EPA methane regulations. It argues that government action is essential for decarbonization and for preventing financial portfolios from becoming 'toxic' due to physical climate risks or stranded assets in capital-intensive sectors. To address this, the document recommends that C-Suite executives appoint a chief climate officer, integrate policy goals into annual reporting, and support specific US policies regarding methane, electricity decarbonization, and mandatory risk disclosure to align with the Biden administration's goal of cutting emissions by 50-52% below 2005 levels by 2030.

• There is a significant discrepancy between the total assets of firms making net-zero pledges and those actively supporting specific climate regulations, such as US EPA methane rules.
• Financial firms face substantial risk management imperatives if they fail to maximize climate policy opportunities, including the risk of holding 'toxic' lending books in capital-intensive sectors or facing physical risks from extreme weather.
• The document proposes three specific implementation steps for C-Suite executives in 2021: establishing a dedicated climate policy team led by a senior manager (e.g., a chief climate officer), integrating policy into core processes like annual reporting, and selecting specific material policies for engagement.
• In the United States, the author identifies key policy priorities for investors to support, including the regulation of methane and flaring, the decarbonization of electricity, the electrification of transportation, and mandatory climate risk disclosure, to help meet the Biden administration's target of 50-52% emission reductions below 2005 levels by 2030.

APA

Blanton, B. R. E. (2021). It's time for climate change investing to be put into action. World Economic Forum. https://www.weforum.org/stories/climate-action/climate-change-investing-take-the-lead-action/

Chicago

Blanton, Ben Ratner, Erin. It's time for climate change investing to be put into action. World Economic Forum, 2021. https://www.weforum.org/stories/climate-action/climate-change-investing-take-the-lead-action/.

Wikipedia

{{cite press release |last1=Blanton |first1=Ben Ratner, Erin |title=It's time for climate change investing to be put into action |publisher=World Economic Forum |date=2 June 2021 |url=https://www.weforum.org/stories/climate-action/climate-change-investing-take-the-lead-action/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{blanton2021its, author = {Blanton, Ben Ratner, Erin}, title = {{It's time for climate change investing to be put into action}}, publisher = {World Economic Forum}, year = {2021}, month = jun, url = {https://www.weforum.org/stories/climate-action/climate-change-investing-take-the-lead-action/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }