Wydler Asset Management joins the Institutional Investors Group on Climate Change (IIGCC)

“Investor Expectations for Paris-aligned Accounts” sets out investor expectations in five clear steps that companies can take when preparing financial statements that are in line with the Paris climate agreement:

• A confirmation that climate risks are included in the financial statements;
• Adjustments to critical assumptions and estimates;
• Sensitivity analyses and their results related to variances in judgments or estimates;
• Dividend resilience and implications for dividend distributability in complying with the Paris Climate Agreement; and
• Confirmation of consistency between narrative reporting of climate risks and accounting assumptions.

A clear expectation was also sent to accounting firms to explicitly highlight material climate risks as part of financial statement audits, particularly where financial statements are not “Paris compliant.” Where these expectations are not met, members, in their role as investors, see opportunities for engagement, reconciliation, and even sale of the investments made. The aim is to ensure that investors can maximize their contribution to limiting global warming to no more than 1.5 degrees Celsius in line with the latest economic evidence and the higher ambitions of the Paris Agreement. Putting the target into practice means that investors should ensure that their portfolios contribute to achieving net-zero emissions by 2050 at the latest. The path to alignment with Paris thus leads to becoming a “net-zero investor.”

Having already signed the United Nations Principles for Responsible Investments, joining is a further logical step for us as part of our ESG (= Environment -- Social -- Governance) orientation. Climate risks and climate change are issues that must be taken into account, especially by us as investors. For us, sustainability is not just a newfangled buzzword, but has always been an integral part of our investment culture. You can find more detailed information at https://www.netzeroassetmanagers.org/.