A group of 26 long-term investors from around the world with a combined US$1.5 trillion in assets has set new guidelines for asset managers to step up climate action or risk divestment. (Financial Times)

Talking point: The guidelines come as financial institutions and asset managers—including BlackRock, the world’s largest—walk back climate commitments amid political pressure and legal challenges in the U.S. But the investor group said climate change is a systemic and material financial risk that must be factored into long-term investment decisions. Asset owners may dump managers or downgrade their ratings if they don’t make sufficient efforts to mitigate climate risks, according to the group’s memo. While the coalition doesn’t include any Canadian firms, the country’s institutional investors seem to agree that despite political backlash, climate change remains a financial risk they intend to curb.