“The economic incentive for both consumers and corporates to invest in climate solutions is significant. This is not only true for the renewable energy sector, but for a wide range of investment areas.”
The managers said companies globally were setting “ambitions” targets to save energy, materials and resources.
“Investor perception has also changed in recent years. The notion that environmental benefits and good economic returns cannot be achieved at the same time has been well and truly dismissed,” they said.
“Despite this, the impact of climate and environment as a driver of company cash flows remains under-researched and underestimated by most market participants.”
Axa Investment Managers’ global head of responsible investment, Matt Christensen, said the decision was “highly concerning as the US is a major greenhouse gas emissions contributor”.
“In the mid-term, we believe this decision is more symbolic than material,” he said.
“We also think that most of the negative impact from this decision will be on the US itself and not so much on global climate action, which should keep its momentum regardless. The US may be surprised to find trade negotiations more difficult as an outcome of this action.”
However, sustainable investing pressure groups reacted furiously to the development last night.
“The exit of the United States from the Paris Agreement is unequivocally the wrong decision,” said US SIF: The Forum for Sustainable and Responsible Investment.
CEO of the organisation, which claims to represent $3trn in assets under management, Lisa Woll said rising concern on climate change was “well documented among the largest institutional investors”.
“Money managers with $1.42 trillion in assets under management and institutional asset owners with $2.15 trillion in assets consider climate change risk in their investment analysis, more than three times the amounts affected in 2014,” she said.
“Moreover, shareholders concerned about climate risk filed 93 resolutions on the subject in 2016 and negotiated several commitments from target companies to disclose and reduce their greenhouse gas emissions.”
