United Nations Praise New Financial Tool on Climate Change

New York, The United Nations Framework Convention on Climate Change (UNFCCC) praised today the launching of a financial tool that will track the efforts of companies in the face of climate change.
The tool was launched online at the London Stock Exchange (LSE) by 13 funds and five firms who manage more than $2.4 trillion, AP reported. The new tool is called the Transition Pathway Initiative and it will allow asset managers to check how companies have been preparing to operate in a low-carbon economy.
The Executive Secretary of the UNFCCC Patricia Espinosa commented on the news and said the tool will make a contribution to limiting climate change by factoring it into financial investment decisions. The tool builds on a recommendation made by a G-20 task force in December. They said that companies should provide investors with more information on the risk their companies face from global warming.
The new initiative was launched by the financial arm of the Church of England, the Environment Agency Pension, Aviva Investors, Standard Life Investments, BNP Paribas Investment Partners, PGGM and Hermes Investment Management and others. Financial Times reported today that the tool is developed with the Grantham Institute at the London School of Economics and using data from FTSE Russell, the index provider. It will rank companies by two measures: how well their management is dealing with climate change risks, and how effective they are at achieving carbon reduction.

Source: Qatar News Agency