UTAM joins institutional investors calling on aviation sector to address climate change

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Copyright : Durk Talsma //123RFThe University of Toronto Asset Management Corp. is teaming up with more than 120 institutional investors to call on the aviation sector to confront the issue of climate change-related risks and opportunities.

The UTAM signed a statement from the United Nations-supported Principles for Responsible Investment, which lays out investors expectations on climate change for the sector. The PRI prepared the document with input from Climate Action 100+ investors.

“We have developed the investor expectations . . . as guiding standards to support airline and aerospace companies in managing climate-related risks and proactively positioning themselves for the transition to a low-carbon economy,” the statement said. “We view these actions as vital to those with a fiduciary responsibility for other people’s long-term investments and support their implementation.”

Aviation accounted for 2.4 per cent of global carbon dioxide emissions in 2018, said a release from the UTAM, noting that if the sector were a country it would be the world’s sixth-largest emitter.

Key expectations laid out in the document included, setting timelines and targets to reach net-zero emissions by 2050; reducing emissions without only relying on carbon offsets; putting in a strong governance framework, clearly articulating a given corporate board’s accountability regarding the risk and opportunity set of climate change; implementing corporate disclosure in line with guidelines of the Task Force for Climate-Related Financial Disclosures; and supporting ambitious climate change policy and bringing lobbying practices in line with the goals of the Paris Agreement.

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