One Planet Sovereign Wealth Funds | The purpose of the One Planet Sovereign Wealth Funds Framework is to accelerate the integration of climate change analysis into the management of large, long-term and diversified asset pools.

Integrating Climate Change Risks and Investing in the Smooth Transition to a Low Emissions Economy

This Initiative is championed by President Emmanuel Macron of France

The one planet sovereign wealth funds framework

Following the 2015 Paris Agreement to collectively mitigate the effects of climate change, the One Planet Summit was held on 12 December 2017, which was followed by the Climate Finance Day, recognising the important role played by this key sector.

Given both their influence and long-term investment horizons, SWFs are uniquely positioned to promote long-term value creation and sustainable market outcomes. Accordingly, the “One Planet Sovereign Wealth Fund Working Group” was established at the event in order to accelerate efforts to integrate financial risks and opportunities related to climate change in the management of large, long-term asset pools.

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What we do

Build on the growing body of practice in the investor community, increase the efficiency in global capital allocation, thereby contributing towards the smooth transition to a more sustainable, low-carbon economy.

Why we do it

To accelerate the integration of climate change issues into the management of large, long-term asset pools thereby improving long-run returns through:

Foster

a shared understanding of key principles, methodologies and indicators related to climate change

Identify

climate-related risks and opportunities in their investments

Enhance

their investment decision-making frameworks to better inform their priorities as investors and participants in financial markets

Three principles that guide us

Build on the growing body of practice in the investor community, increase the efficiency in global capital allocation, thereby contributing towards the smooth transition to a more sustainable, low-carbon economy.

Alignment

Build climate change considerations, which are aligned with the SWFs’ investment horizons, into decision-making.

Ownership

Encourage companies to address material climate change issues in their governance, business strategy and planning, risk management and public reporting to promote value creation.

Integration

Integrate the consideration of climate change-related risks and opportunities into investment management to improve the resilience of long-term investment portfolios.