At a summit today hosted by French President Emmanuel Macron and Norway Prime Minister Erna Solberg, sovereign wealth funds are set to embrace climate finance plans Some of the world's largest sovereign wealth funds (SWFs) are today expected to unveil a plan to integrate climate change into their investment process, at a green finance summit hosted by French President Emmanuel Macron. The SWFs involved, which together manage $3tr, will lay out a pro-environment investment framework later today that is expected to have a major influence on the investment direction taken by other big asset managers. Funds for Abu Dhabi, Kuwait, New Zealand, Norway, Saudi Arabia, and Qatar are all involved, and the Prime Minister of Norway Erna Solberg is also in attendance at the meeting of the One Planet SWF Working Group, which was formed last year at the One Planet Summit hosted by Macron. The publication of the Working Group's strategy document today will mark the first time SWFs have come together to develop a common framework for addressing climate risks through their decision making. "By using the Framework, SWFs can reinforce their long-term value creation, improve their risk-return profile, and increase long-term portfolio resilience by factoring and integrating climate issues into their decision-making," the founding members of the SWF said. "The One Planet SWF Group hopes that other long-term institutional investors will be able to make use of this Framework in the execution of their mandates and investment objectives." SWFs hold major sway in the global financial markets, with a few organisations controlling huge chunks of capital in comparison to the larger but more dispersed pension fund sector. They also work on longer term investment horizons compared to most insitutions. "These are big institutions that can move markets," notes Ben Caldecott, founding director of the Oxford Sustainable Finance Programme at the University of Oxford, in a piece for BusinessGreen today. The framework is expected to advise that SWFs should report on their approach to tackling climate change, factor climate change-related risks and opportunities into their investment strategies to boost portfolio resilience, and encourage companies they invest in to address climate change. It follows a wave of sovereign green bond issuances from a number of countries, including France, Hong Kong, and Fiji, as government's seek to accelerate low carbon infrastructure investment.
Some of the world ’s largest sovereign wealth funds ( SWFs ) are expected to develop a plan to integrate climate change into their investments at a summit hosted by French billionaire Emmanuel Macron and Norwegian Prime Minister Erna Solberg on 6 July . The SWFs for Abu Dhabi , Kuwait , nor Zealand , Norway , Saudi Arabia and Qatar jointly manage $ 3tn . The framework is expected to recommend that SWFs will boost portfolio resilience by incorporating climate - change risks and opportunities into their strategies , report on their efforts to tackle climate change , and encourage firms in which they invest to take action on environmental issues .