Australian investors controlling billions of dollars will start pressuring the world's biggest polluters to do more on climate change as part of a new global initiative.
Around the world, 225 investors controlling more than $US26.3 trillion ($A36.8 trillion) have joined forces in the Climate Action 100+ initiative, which launched on Tuesday during the French government's One Planet climate summit.
They plan to target 100 companies who are the world's biggest polluters in direct and indirect ways, including through emissions associated with the use of their products.
Companies on the list cover oil, gas and electricity businesses, the world's major car and aircraft manufacturers, and household names like Nestle, Pepsi and Panasonic.
Australian mining giant BHP Billiton is included, along with others that operate down under such as Rio Tinto and Glencore.
Investors who hold shares in these companies will write to their boards and senior management asking them to clearly set out the board's accountability and oversight of climate risk and to start cutting emissions.
Major Australian superannuation funds - including Australian Super, VicSuper, First State Super, Cbus and Hesta - and some of the country's biggest investment funds like AMP Capital, Australian Ethical Investment, Ausbil, IFM Investors and Colonial First State's investment arm have signed up.
Australian Super's senior investment governance manager Andrew Gray said it was remarkable such a substantial community of investors had come together in the short time since the initiative was first floated in September.
"They want to send an unequivocal signal- directly to companies - that they will be holding them accountable in order to secure nothing less than bold corporate action to improve governance, curb emissions, and increase disclosure to swiftly address the greatest challenge of our time," he said.
The new initiative is coordinated in part by the Australian-based Investor Group on Climate Change.
"This project puts companies on notice that investors expect real action on climate change," group chief executive Emma Herda said.
"Through Climate Action 100+ investors hope to move companies to go further, faster, when it comes to managing climate change risk and developing low carbon opportunities."
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