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Global Climate 500 Index 2016

The fourth AODP Global Climate 500 Index launches against a backdrop of positive change. It is now widely acknowledged that to ignore the financial risk of climate change is a threat to investment portfolios and a growing number of investors are taking actions to understand how holding the increase in the global average temperature to well below 2°C will impact their investment portfolios. Climate change risk is now a mainstream issue for institutional investors and last year has seen many significantly step up their action to manage this. However only a handful are protecting their portfolios from the very real danger of stranded asset1 scenarios, and it is shocking that nearly half the world’s biggest asset owners are doing nothing at all to mitigate climate risk. Asset owners who do recognise climate risk are taking significantly more action than last year. The Leaders are widening the gap from the Laggards, but the ‘Learners’ are starting to catch up. These results are even more impressive, as the 2016 Index is more stringent, requiring evidence of tangible action and removing credit purely for transparency or commitments.

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