
2024 was officially the warmest year on record and the first year that the global average temperature rose more than 1.5°C above the pre-industrial average, the target set by the Paris Agreement to mitigate the most severe impacts of climate change. It is more critical now than ever that companies continue to step up their climate ambition and that investors continue to step up their advocacy. Protecting our climate and ecosystems is critical to society, as well as our economy and financial markets.
While there is much work to be done, there are also signs of progress. At COP16 in Colombia, we saw momentum building among a wide range of actors to help reverse nature and biodiversity loss. In our dialogues with banks, we see them increasingly working with clients to provide funding for decarbonization and transition strategies. And across our portfolios, we see companies continue to enhance their leadership diversity, which will put them in a better position to respond to climate-related risks and opportunities.
In this update, we focus on some of our recent engagements with companies on nature and climate goals and highlight some commendable corporate initiatives and commitments. We also share why we do not consider nuclear power a sustainable alternative to fossil fuels, discuss a recent dialogue with Fannie Mae on climate-related risks and resilience in the housing market, and spotlight progress on gender diversity in Japan.
As impact investors, we know collaboration and persistence are key to enhancing corporate accountability and driving progress. By working together, we can foster innovation and resilience and build a more sustainable and inclusive future—one in which economic growth goes hand in hand with ecological sustainability and universal human dignity.