European asset manager Candriam has partnered with the Grantham Research Institute on Climate Change and the Environment (GRI) at the London School of Economics and Political Science (LSE) to launch a three-year initiative with the aim of stepping up the global investment industry’s commitment to a sustainable and inclusive economy
The Sustainability, Investment, Inclusion and Impact (SI3) Initiative will carry out research, improve communications and promote the exchange of ideas on climate action that delivers positive social impact.
A statement from Candriam and GRI said, amid growing calls to ‘build back better’ from the covid-19 crisis, political leaders and investors are recognising the need to accelerate investments into green areas, such as renewable energy, within recovery plans but also focus on plans that have a strong social dimension by supporting jobs and community.
They added that to date, the ‘S’ of ESG had received insufficient attention, particularly in discussions on how to tackle climate change, companies acting to protect their workforce, customers and communities during the coronavirus outbreak has brought the ‘S’ into attention. Climate policies need to be fair and seen to be fair by workers, consumers and citizens to be successful, the statement said.
The SI3 Initiative will also produce public-interest research that identifies how this gap can be filled, particularly addressing how institutional investors can play a part, and analyse different asset classes and policy changes need to bring about inclusive climate action.
There will also be a key focus on created a comprehensive framework the investment industry can adopt to accelerate change, and producing actionable research ahead of COP26 in Glasgow in November 2021.
Naïm Abou-Jaoudé, CEO of Candriam and chairman of New York Life Investments International, said: “Achieving the Paris Agreement and delivering the UN Sustainable Development Goals will require a rewiring of the financial system to meet the long-term needs of our economies and societies. As we look to the future, Candriam is proud to partner with the Grantham Research Institute to launch a world-class research and collaboration initiative to help support the transition to a sustainable and inclusive global economy.”
Nick Robins, Professor in Practice for Sustainable Finance at the Grantham Research Institute on Climate Change and the Environment, added: “The just transition is the next frontier for investor action on climate change. I’m delighted to join with Candriam to design this international initiative that can make the issues of environmental sustainability, inclusion and impact come to life and so show investors can contribute to a better world after covid-19.”