A recent survey carried out by the Institutional Investors Group in Climate Change (IIGCC) revealed that the proportion of institutional investors who consider firms' climate change policies when making investment decisions has more than doubled in the past two years. 

According to the findings, which are outlined in the Investor Statement on Climate Change Report 2009, 60% of asset owners asked climate change related questions when meeting with potential managers in 2009, compared to 30% in 2007. In addition, 70% commissioned or supported climate change research, compared to 45% in 2008.

Ole Beier Sørensen, the new Chairman of IIGCC, who is Chief of Research and Strategy at ATP, comments: “The fact that asset owners now question their asset managers about their climate change policies prior to making a selection is a clear signal of increased awareness on climate change in the investment community. This progress will be further strengthened if attention to climate change is applied throughout the decision making process, from investment manager selection to Investment Manager Agreements.”

David Russell, Co Head of Responsible Investment at USS comments: “Investors are taking account of climate change where there is a price on carbon and where there are clear regulatory incentives, such as government support for renewable energy. However, climate change issues are largely not integrated when policy does not make the issue material, when there are uncertainties surrounding climate change policy and when the long-term nature of many physical climate change impacts means that they are outside current investment horizons.”

So despite the growing skepticism of the climate change theory, the financial sector is actively involved in climate change investments and it is paying huge dividends.