UTAM has joined more than 120 institutional investors (representing US$6.0 trillion in assets under management) in calling on the aviation sector to better address climate risks and opportunities.

Today, the United Nations–supported Principles for Responsible Investment (PRI) released the Investor Expectations Statement on Climate Change for Airlines and Aerospace Companies, which it prepared with input from investors participating in Climate Action 100+, a UTAM-supported initiative that was formed to engage with over 100 of the world’s largest corporate greenhouse gas emitters.

“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 says. “We view these actions as vital to those with a fiduciary responsibility for other people’s long-term investments and support their implementation.”

Aviation is a fast-growing sector that accounted for 2.4% of global CO2 emissions in 2018. If aviation were a country, it would be the world’s sixth-largest emitting nation. The industry has introduced measures to address emissions, but they are insufficient to achieve the reductions necessary to align with the goals of the Paris Agreement.

The investor statement lays out several expectations, including the establishment and disclosure of robust transition plans consistent with the goals of the Paris Agreement. Some key expectations for the industry include:

  • Setting targets and timelines for reaching net-zero emissions by the year 2050
  • Achieving emission reduction targets without relying solely on carbon offsets
  • Implementing a strong governance framework which clearly articulates the board’s accountability and oversight of climate change risks and opportunities
  • Providing strong corporate disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
  • Lobbying consistently with the Paris Agreement and supporting ambitious climate change policy

Read the full statement.