Justin Welby said fund managers had “not sufficiently stepped up to the plate” to use their ownership of companies to press for change. He said investors should tell firms to help meet targets set by the Paris climate agreement.
Welby said: “The situation we find ourselves in has rightly been called a climate emergency. We know it’s unquestionable that investors acting together can influence outcomes on everything, including climate change.
here.“It is in investors’ power to help avert the disastrous consequences – ethical and financial – of failing to achieve the Paris goals.”
Welby’s words are his most direct criticism of the fund management industry over the climate emergency. He has argued before that concern over global heating would shake up investment and has encouraged investors to drive change.
He made his latest comments in support of a Global Ethical Finance Initiative summit next month in Edinburgh on how to make finance work better for people and the planet.
Welby said: “Money is not morally neutral – it can do harm and it can do good. At the very least it is the responsibility of investors to take account of environmental, social and governance factors in their investment decisions and in their stewardship of their assets.”
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