The impacts of climate change on the global economy could not be clearer.

Unabated climate change is projected to wipe off up to 18% of worldwide GDP by 2050 and reduce as much as $23 trillion in in annual global economic output1. On the other side of the same coin, climate change solutions, such as clean energy investments are a $5 trillion investment market, which could add up to 0.4% in annual global GDP growth2.

As companies and investors plan for long-term performance, positioning themselves in light of this reality is key. As a result, they are setting climate change and even net zero goals in ever-increasing numbers to demonstrate their intention to transition and stay resilient in a changing world.

Yet, these goals have not been matched with details on how this transition will be realized and importantly, how capital will be deployed. For corporate and investor action on climate change to be effective, it must be built on a shared understanding of how such actions will contribute to global decarbonization and build value in the long term.

As an organization whose mission is to focus capital on the long term, tackling the investment implications of climate change is central to FCLTGlobal’s work. Our team is developing research and tools that will help companies and investors meet the goals outlined above.

Climate | Report

Grey to Green: The Opportunity for Private Equity to Decarbonize Assets

26 April 2023 - As companies around the world begin to make the shift to more sustainable practices, private markets have the potential to drive substantial investment in the "grey-to-green" transition by investing in high-carbon-emitting sectors with the goal of reducing their emissions over time. However, concerns around returns, metrics, and reputational impacts are limiting greater participation.

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Climate | In the News

Regulatory ‘Band Aids’ won’t cure climate change inaction

22 November 2022 - Regulators would do well to align climate transition plans with long-term strategy, or else companies will continue sidestepping the changes needed to actually move the needle on decarbonization.

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Climate | In the News

Governance Matters podcast: Getting directors on board to tackle climate crisis

3 August 2022 - This episode of the Governance Matters podcast looks at changing board attitudes toward climate change and what investors are looking for from directors in terms of climate-related skills and knowledge.

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Climate | In the News

Investors Need to Change the Climate Conversation With Companies

28 June 2022 - Companies act on what their investors prioritize. And companies have set climate goals given the focus of the global investor community on climate change goal setting. Yet, where the goals are disconnected from the business strategy, they do not materially change what companies prioritize, where they allocate capital and how they operate. Their behavior—and therefore their risk exposure and impact— does not meaningfully evolve.

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Climate | Article

Climate Change Integration is Hard – Companies need resources; Investors need patience

21 June 2022 - Developing integrated climate and corporate strategy is not an easy task. While work between companies and their investors will take time, effort, and resources, peer-to-peer discussions and practical tools can guide the process towards better strategic integration.

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Climate | In the News

Why the world is approaching an inflection point on climate investing

31 May 2022 - The world is approaching an inflection point on climate investing, says the Asia-Pacific chair of one of the world’s largest asset managers, with developments on standardised data and appropriate incentives that are speeding the pace towards net-zero emissions.

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Climate, Investor-Corporate Engagement, Strategy | Report

Sustainability or Strategy: Bridging the Gap Between Climate Change and Long-term Value Creation

31 May 2022 - New research suggests that companies could do more to bridge the gap between their climate change approach and their long-term value creation strategies.

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Climate, Metrics, Policy | Article

Comment to the SEC: The Enhancement and Standardization of Climate-Related Disclosures for Investors

23 May 2022 - The U.S. Securities and Exchange Commission SEC recently requested public comments on a recently proposed rule that would require companies to provide climate-related information in their registration statements and annual reports.

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Climate, Strategy | Report

Decarbonizing Long-Term Portfolios

11 April 2022 - An Adaptable, Top-Down Approach to Addressing Climate Change in Investment Portfolios

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Climate | In the News

Why the SEC is right to make climate risk disclosure mandatory

30 March 2022 - To direct private capital to address the complex and daunting challenges of the energy transition, climate risk disclosure needs to be standardised, mandatory and regulated in the same way as financial reporting to ensure it is timely, accurate, complete and verified.

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Climate | In the News

FCLTGlobal: Climate risk visible in all transactions

15 December 2021 - A recent webinar hosted by FCLTGlobal, the not-for profit that aims to focus capital on the long-term to support a sustainable economy, urged investors to allocate more to emerging markets to solve the climate emergency and consider climate risk in every transaction.

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Climate | Report

Unpacking the Value of Corporate Net Zero Commitments

13 December 2021 - Since the Paris Agreement, many companies have committed to different levels of decarbonization in line with climate goals. From making net-zero commitments to setting targets aligned with the Science Based Targets initiative, more and more companies are signaling their commitment to climate.

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Climate | Article

The Big Short: Investor Time Horizon Contraction in the Wake of Net Zero Commitments

24 November 2021 - Will shorter holding periods have an impact on climate change efforts?

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Climate | In the News

A new phase for green investing

17 November 2021 - More specific view of how individual companies are tackling climate change will be needed

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Climate, Investor-Corporate Engagement | Toolkit

Climate Transition Conversation Guide

1 November 2021 - Companies are setting net zero and other climate commitments in growing numbers to demonstrate their readiness to take action in the face of climate change. However, meaningful details about how these commitments and even climate change itself will affect corporate strategy are scarce. Such clarity is particularly important for assets, companies, and industries in transition. The lack of clarity is impeding market reactions to climate commitments.

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Climate | Article

Why Climate Strategy Needs to Come Before Climate Reporting

27 October 2021 - A lack of “decision useful” climate disclosures has been a cause for discontent on both sides of the investment value chain.

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Podcast

Going Long Podcast: Charles Emond, CDPQ

12 October 2021 - The head of CDPQ joins the podcast to discuss the organization's unique "double mandate" - providing long-term financial returns for depositors and providing constructive capital to Quebec's economy.

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Climate, Strategy | Article

We Need Consensus On Climate Terminology

12 October 2021 - Thanks to decades of advocacy, some very real climate-related disasters, and meaningful progress on the global policy and regulatory stage, climate consciousness is finally in vogue with mainstream companies and investors.  

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Climate | In the News

Why Investors Are Skeptical About All Those Big Corporate Climate Pledges

4 October 2021 - On the face of it, climate commitments set the stage for capital to be deployed at scale to decarbonize the global economy. Yet the reality has proved to be more complicated.

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Metrics | Article

Sustainability metrics: why it’s time investors look in the mirror

1 October 2021 - Investors look for sustainability and non-traditional metrics from companies they invest in, but what if they held themselves accountable in the same way? This piece is from a blog series written by members of the Global Future Council on Investing exploring factors shaping the investment portfolio of 2040.

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Climate | Report

Adapting Corporate Sustainable Value Creation Indicators for Investors

30 September 2021 - In the last few years, it has become well accepted that climate risk is investment risk, and environmental, social and governance (ESG) linked assets have skyrocketed.

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In the News

Entrenched risk-management practices will yield to climate trends

12 August 2021 - Antiquated risk management practices will be forced to evolve to accommodate climate risks. By estimating the future instead of just measuring the past, risk managers will own the beliefs and strategies that underpin their projections researchers at FCLTGlobal predict.

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Climate, Metrics, Policy | Article

Comment to the SEC: Request for Public Input on Climate Change Disclosures

18 June 2021 - In light of demand for climate change information and questions about whether current disclosures adequately inform investors, the SEC recently requested public input on climate change disclosure.

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Podcast

Going Long Podcast: Mark Carney

14 June 2021 - Carney’s book, Value(s): Building a Better World for All, is available now. Episodes are also available on Apple, Spotify, and YouTube....

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Panelists on webinar

Video

Investing in the Sustainable Infrastructure Transition

21 May 2021 - The world’s infrastructure systems face critical challenges as we look to meet the needs of a growing, increasingly urban population while at the same time dramatically reducing carbon emissions. Technological advances and the Covid-19 epidemic have expanded our conception of critical infrastructure, as telecommunications and other resources become imperative to people and economies around the world.

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Metrics | Article

Global Data Providers Align on Sustainability Metrics

19 May 2021 - On 19 May 2021, five global data providers released a joint statement in support of the creation of a core set of metrics for all companies regardless of sector, geography, or size.

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Article

Capital Markets Solutions for A Sustainable Future

29 April 2021 - Commitments to net-zero objectives are taking hold across the investment value chain and present substantial opportunities. But are these initiatives likely to infuse capital into actual climate solutions, or do we risk creating structures that...

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Video

Investing in the Sustainable Food & Agriculture Transition

14 April 2021 - A discussion from 14 April 2021 among top business leaders and institutional investors on the opportunities ahead to position the food and agriculture industry for a more sustainable future.

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Press Release

An Urgent Call to Biden-Harris Administration: Create White House Initiative on Inclusive Economic Growth

7 April 2021 - Structural reforms to capital markets and increased community investing key to supercharging Administration’s efforts to address COVID-19 fall out, racial wealth gap and climate change

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Climate | In the News

Climate plans of big companies need substance

15 March 2021 - Distant emissions pledges will ring hollow unless boards are held to account for progress now.

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Top Down Net-zero

Climate, Strategy | Article

A Top-Down Approach to Net Zero Portfolios

2 March 2021 - Focusing capital on long-term climate solutions via investment portfolio construction

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Climate, Strategy | Article

Do Capital Markets Value Net Zero Commitments?

25 February 2021 - Evaluating whether market reactions reflect the value of a corporate net-zero commitment in the short, medium, and long term

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Policy, Metrics | Article

Comment to the IFRS Foundation on Sustainability Reporting

7 December 2020 - To the IFRS Foundation: FCLTGlobal is a 501(c)3 not-for-profit research organization that develops research and tools that encourage long-term business and investment decision-making across the global investment value chain. Focusing Capital on the Long Term began...

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Climate, Strategy | In the News

Climate Risk is Investment Risk: Fink

12 November 2020 - "Transparency is the currency for trust and we have to get on with executing the strategy we have laid out and be transparent about it so people can see we are doing what we said. In time, investors will be more convinced we can create value by doing the right thing by the world.”

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Strategy | Video

Investing in the Sustainable Energy Transition – McKinsey FCLTGlobal Sustainable Transition Series

6 November 2020 - On Friday 6 November, FCLTGlobal and McKinsey & Company hosted the first panel in our virtual event series, "Investing in the Sustainable Transition." Larry Fink (BlackRock), Bernard Looney (bp), Kevin Sneader (McKinsey), and Sarah Williamson (FCLTGlobal) discussed the progress and outlook for sustainability within the global energy sector.

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1 Guo, Jessie, Daniel Kubli, and Patrick Saner. “The Economics of Climate Change.” Swiss Re. Swiss Re Institute, October 19, 2021. https://www.swissre.com/institute/research/topics-and-risk-dialogues/climate-and-natural-catastrophe-risk/expertise-publication-economics-of-climate-change.html.

2 “Net Zero by 2050.” Net Zero by 2050 – A Roadmap for the Global Energy Sector. International Energy Agency, 2021. https://iea.blob.core.windows.net/assets/ad0d4830-bd7e-47b6-838c-40d115733c13/NetZeroby2050-ARoadmapfortheGlobalEnergySector.pdf.