The University of Toronto Asset Management Corp. is teaming up with more than 120 institutional investors to call on the aviation sector to confront the issue of climate change-related risks and opportunities.
The UTAM signed a statement from the United Nations’ Principles for Responsible Investment, which lays out investors’ expectations on climate change for the sector. The PRI prepared the document with input from Climate Action 100+ investors.
“We have developed the investor expectations . . . as guiding standards to support airline and aerospace companies in managing climate-related risks and proactively positioning themselves for the transition to a low-carbon economy,” the statement said. “We view these actions as vital to those with a fiduciary responsibility for other people’s long-term investments and support their implementation.”
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Aviation accounted for 2.4 per cent of global carbon dioxide emissions in 2018, said a release from the UTAM, noting that if the sector were a country it would be the world’s sixth largest emitter.
The key expectations laid out in the document include: setting timelines and targets to reach net-zero emissions by 2050; reducing emissions without just relying on carbon offsets; putting in a strong governance framework; clearly articulating a given corporate board’s accountability regarding the risks and opportunities of climate change; implementing corporate disclosure in line with guidelines of the task force for climate-related financial disclosures; and supporting ambitious climate change policy and bringing lobbying practices in line with the goals of the Paris Agreement.