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ii. Investors Must Exert Social, Political, and Economic Pressure
on the Fossil Fuel Industry to Transition to Clean Energy by
Divesting Therefrom
The Commission calls on investors to invest in protecting the climate for
present and future generations. Conventional investing, where profit is the sole
driving force, should no longer be the norm. The imperatives of sustainability
and protection of the environment and the climate system for present and
future generations must now also be investment considerations. As owners of
capital, investors have the power to influence and direct company policies and
actions. Thus, investors should be more circumspect in their investments and
mindful of their obligation under the UNGP-BHR to respect human rights.
They must ensure that the companies they invest in do not tolerate, propagate
or contribute to human rights abuses in all phases of their operations, including
within their value chains.
The consistent use of environmental, social and governance (ESG) criteria in
investment decisions is likewise encouraged. ESG criteria are standards used by
socially-responsible investors in screening potential investments. Human rights
impacts are necessarily included therein. The Commission joins in encouraging
networks such as the Investor Alliance for Human Rights, whose members
integrate ESG considerations in investment decision-making processes, in
using their leverage as investors to influence responsible business conduct. The
Commission also notes the work of the Transition Pathways Initiative (TPI)
in creating tools and generating resources for investors to assess companies’
preparedness to transition to a low-carbon economy. By integrating TPI’s data
in ESG assessments, investors can better understand how their holdings fare
with the pathways set by the Paris Agreement and, consequently, make better
and more informed socially responsible investment decisions.
The Commission fully supports the Fossil Fuel Divestment Movement in
its action to mitigate climate change. This movement calls on individual and
institutional investors to divest from financial instruments connected with the
fossil fuel industry to exert social, political and economic pressure upon fossil
fuel companies to transition to clean energy. The movement puts to public
discourse the ethics and morality of knowingly profiting from activities that
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