Climate Justice can Inform Responsible and Responsive Investment    

Global investors can steer investment towards low carbon, climate resilient activities that are good for people and planet. Photo: Dana Smillie / World Bank

Pursuing Climate Justice within ESG Investment Frameworks

By embedding climate justice criteria in Environmental Social and Governance (ESG) frameworks, investors can develop portfolios that enable sustainable development and safeguard the rights of people in vulnerable situations.

The World Economic Forum Meeting is taking place in Davos, Switzerland, bringing together business leaders, political leaders, academics and journalists from around the world. This year  the Forum is convened under the theme of Responsive and Responsible Leadership.

The two global agendas currently underway to provide a safe and equitable planet for current and future generations – the 2030 Agenda for Sustainable Development and the Paris Agreement on Climate Change – make clear that their success requires active and unprecedented engagement by the private sector.

In this context, responsive and responsible leadership will entail business leaders putting in place the necessary safeguards to ensure their operations do not undermine environmental sustainability or infringe on the rights of people, but instead accelerate progress towards the Sustainable Development Goals (SDGs) and climate action.

How investors choose to allocate their resources today will be a significant determinant to the success of the SDGs and the Paris Agreement. Responsible investment is necessary – this means investment practices that aim to incorporate ESG factors into investment decisions in order to better manage risk and generate sustainable, long-term returns.

Synergies exist between ESG investment frameworks and the Principles of Climate Justice. Global investors can steer investment towards low carbon, climate resilient activities that are good for people and the planet.  The Mary Robinson Foundation – Climate Justice has completed a research project to highlight how, by incorporating climate justice, the investment community can play a pivotal role in achieving a safe future underpinned by shared and durable prosperity. A paper based on this research can be downloaded below.

Related links

Pursuing Climate Justice within Environmental, Social and Governance Investment Frameworks