Neuberger Berman and Sumitomo Mitsui Trust Asset Management are also among firms joining the sovereign engagement program coordinated by the Principles for Responsible Investment, the group said in a statement Thursday. The additions expand the initiative from seven investors to 25, with a combined $8 trillion in assets, it said.
Australia is the first country the Collaborative Sovereign Engagement on Climate Change initiative is targeting. The nation “has underperformed other OECD countries significantly in terms of climate indicators” while being above average on social and governance factors, said Peter van der Werf, head of engagement at Robeco and an advisory committee member.
Australia this week was forced to acknowledge climate change may impact its borrowing costs after it was sued for allegedly misleading investors by not disclosing climate risks when selling its debt. A government report issued last week estimated Australia could face economic losses of as much as A$423 billion in reduced productivity if global action fails to halt extreme climate change.