Less than a week after the UN confirmed the Paris Agreement would come into effect on 04 November this year, a global network of more than 250 institutional investors (representing assets worth over $24 Trn) has published a guide setting out the threats facing the automotive sector and investor expectations for how these companies must shift gear to adapt their business strategies to address climate related risk and build a sustainable low carbon transport system for the future.
Launching Investor Expectations of Automotive Companies – Shifting gears to accelerate the transition to low carbon vehicles Stephanie Pfeifer, CEO for European investor network IIGCC said, “This guide signals a new area of concerted engagement between big investors and one of the most significant sectors when it comes to tackling the climate challenge. As a consequence of the Paris Agreement, investors expect regulatory frameworks affecting the automotive sector to become far more stringent, not least those governing vehicle fuel performance standards in the EU and elsewhere. Several automotive companies have already recognised they must increase capital expenditure in sustainable driving technology and product pipelines if they are to develop a climate resilient business model. Likewise, that they must engage with policy makers to ensure sustainability is placed at the heart of the industry’s future.”