Financial statements drive decision-making at companies. If the world wants to ensure capital is allocated in line with the Paris Climate Agreement, then company accounts need to be aligned with the Paris goals. If investors wish to ensure resilience in their companies tomorrow, climate risks need to be accounted for today.
This simple message, which Sarasin & Partners alongside other investors has been delivering to companies and audit firms for some time (Read our letters to Deloitte, PWC, KPMG and EY and BP, Shell, Total), has today been amplified by a number of global investor networks in a letter published by UNPRI, UNEP FI, UN-convened Net-Zero Asset Owner Alliance, IIGCC, IGCC and AIGCC. Read the open letter.
We welcome this statement, and call on directors and auditors in all markets – public and private – to respond both positively and urgently. The more we delay bringing climate risks into our accounts, the more we put all our futures at risk.