As part of the PRI's Collaborative Sovereign Engagement on Climate Change, PRI signatories participating in the Australian engagement programme will seek to reduce to reduce risk associated with worsening global heating and maximise the opportunities arising from the transition to a net-zero global economy, including where related to:

• The value of sovereign debt investments;
• The continued competitiveness of national economies and investee companies; and
• Systemic risks and opportunities through exposure to the global economy.

This is consistent with investors’ fiduciary duty to address climate-related risks and opportunities by supporting governments in meeting the commitments to the Paris Agreement objectives, where applicable, and ensuring a just and orderly transition to net zero. This is recognised by the growing number of investors that now explicitly factor in sovereign climate performance to their investment decisions.