IFSWF Santiago Principles

Mighty oaks from little acorns grow: Sovereign wealth funds’ progress on climate change

Working in partnership with the One Planet Sovereign Wealth Funds (OPSWF), the International Forum of Sovereign Wealth Funds presents the findings from the first comprehensive survey of sovereign wealth funds’ attitudes to climate change.

The report demonstrates that there is a broad consensus among sovereign wealth funds that they – and other investors – need to take immediate action to mitigate the effects of climate change: 93% recognise that climate change is a risk and/or opportunity for their portfolios. Eighty-eight per cent of sovereign wealth funds surveyed claimed to take climate change into account in their investment processes in some way, though the survey highlights some sharp differences in how systematic and sophisticated these approaches are.

The report reveals that many sovereign wealth funds are focused on finding opportunities in real-asset climate solutions such as renewable energy generation, energy efficiency projects and low-emission transport that have a present-day investment case and return profile. However, multi-asset, and/or whole portfolio approaches, are still in the minority.

Read the Report ►

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