Last year, climate-related disasters caused over $300 billion in economic losses worldwide. As investors, we can no longer afford to treat climate risk as tomorrow’s problem – it is affecting our portfolios today.
As the new chair of the Climate Action 100+ steering committee, I am focused on turning risk into opportunity for our global investment community. At its core, the initiative exists for one clear reason: to help investors, and particularly asset owners, identify and act on material climate risks and opportunities. Doing so is not just a moral imperative; it’s a commercial one.
Assessing and acting on climate-related financial risk should be a central part of an institutional investor’s fiduciary duty. Climate Action 100+ gives investors a stronger voice and greater leverage. Together, we can set shared priorities and drive real impact. Since its launch, the initiative has helped companies recognise and address climate risks. We have seen important commitments, but we cannot afford to lose momentum.
In a world afflicted by energy insecurity, economic volatility and geopolitical tension, investor engagement on climate is not a luxury, but a necessity. As the chair and an asset owner representative of Climate Action 100+, I am committed to ensuring the initiative is guided with clarity and ambition. Asset owners sit at the top of the investment chain are well placed to foster meaningful dialogue and systemic change.
Asset owner expectations remain high
It’s important to state that the expectations of asset owners on taking actions to address climate change have not wavered. We continue to expect asset managers to align with these priorities when managing our capital and to reflect them in their stewardship strategies. These expectations influence how we select, appoint and monitor the managers we work with, and that will not change.
Asset owners remain strong advocates of collaborative engagement. While many also pursue direct engagements with companies, we firmly believe in the value of working together to tackle complex, systemic risks.
At the same time, we are vocal supporters of quality over quantity in stewardship. Effective engagement requires more than just a box-ticking exercise – it demands research, clear objectives, thoughtful dialogue, progress assessment, and an ability to connect engagement outcomes with investment decisions. These principles apply whether we engage alone or together.
Results are emerging, but the work is far from done
We’ve already seen encouraging examples of progress, with investors and companies collaborating across regions to define credible decarbonisation plans.
In Europe, leading utilities have committed to science-based targets with a 1.5-degree pathway, with investor dialogue playing a central role. In Asia, momentum is building among the industrial sector to improve disclosure and transition planning. In Latin America, we’ve seen engagement foster greater transparency on climate governance amongst leading emitters.
These stories are promising, but the climate challenge continues to evolve – and so must we.
In the year ahead, my focus as steering committee chair will centre on strengthening and future-proofing the initiative to meet today’s challenges.
First, we will work to improve the effectiveness of collaborative engagement across sectors and regions. This means ensuring investor groups are equipped with the right expertise, are cognisant of regional contexts and are engaging with companies in ways that recognise real-world operational and market dynamics.
Secondly, we aim to enhance value creation for participating investors. This includes reinforcing our thematic and sectoral work to better support investor-company dialogue. Climate risks span global value chains, and our approach must reflect that complexity if we are to have a meaningful impact.
Thirdly, we will simplify and streamline the Net Zero Company Benchmark, as it remains a valuable resource for both companies and investors. We encourage members to share feedback as we make improvements to ensure it remains actionable and relevant.
Finally, we want to involve asset owner signatories more systemically, encouraging them to call for greater action from managers and to embed climate alignment into manager selection and oversight processes. The more asset owners speak with one voice, the clearer the mandate will become.
A long-term effort, open to feedback
Climate Action 100+ is here to stay, and we’re preparing for its next chapter. We remain ambitious and grounded in the belief that collaborative engagement works when it is strategic, focused and persistent. As we move forward, we welcome feedback from signatories, companies and stakeholders on how we can better equip ourselves for the years ahead.
Valeria Piani is chair of the Climate Action 100+ steering committee and head of stewardship at Phoenix Group
