A coalition representing investors of £1.2tr of assets have endorsed the Asset Owner Statement on Climate Stewardship.

The Statement, signed by 26 pension and investment companies from the UK, Europe, Australia and the US, makes clear its principle-based expectations of asset managers on the crucial issue of climate stewardship.

The Statement aims to facilitate constructive conversations on climate stewardship and embed greater efficiencies into the stewardship chain, empowering asset manager stewardship teams to deliver on their asset owner climate objectives as part of their mandates. Ultimately, the group seeks to raise the bar on climate-stewardship across the investment sector.

Developed from the Asset Owner ‘Aligning Expectations roundtable’ the Statement seeks to address the main challenge identified in the UK Asset Owner Stewardship Review 20234: an ongoing and material divergence between asset owner expectations and implementation of climate stewardship that limits progress towards a net-zero world and better outcomes for beneficiaries.

As owners of capital, the coalition, value their asset managers as their strategic partners in delivering value for their members. Created as a resource to support and empower their asset managers in delivering on their behalf, the statement builds on existing industry guidance. It delves deeply into five key principles and provides a clear indication on the level of scrutiny and detail expected.

Led by The People’s Pension, Brunel Pension Partnership and Scottish Widows, other signatories include Aegon UK, the Church of England Pensions Board, Greater Manchester Pension Fund, Nest, Pensionskasse Basel-Stadt, Phoenix Group and the Shell Contributory Pension Fund.

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