Michael Cohen

Michael Cohen chairs the global steering committee for Climate Action 100+, the world’s largest investor-led initiative to get major corporate greenhouse gas emitters to take action on climate change. Last year, the group rolled out a controversial “Phase 2” strategy, asking signatories to submit corporate climate transition plans. Despite pushback from some high-profile U.S. firms, Climate Action 100+ stayed the course, and has since seen more than 85 new financial institutions sign on. The initiative has also secured some significant recent wins, including a decarbonization roadmap from the largest crude oil and natural gas company in India, and improved scope 3 emissions disclosures from global mining giant Rio Tinto.

What is the single most important action you think the public, or a specific company or government (other than your own), needs to take in the next year to advance the climate agenda?

Companies operating across the United States and the world must do a better job in disclosing their greenhouse gas emissions and climate-related financial risks. Society can’t tackle a problem like climate change if it can’t account for emissions. Investors need clear and consistent data on the material risks climate change poses to companies in order to make informed investment decisions. Two new California laws — currently being challenged in court — will require improved corporate transparency on climate impacts. These laws can form the basis for national and international action on these fronts. Knowledge is power.

What is a climate solution (other than your own) that isn't getting the attention or funding it deserves?

Investors must focus more on providing capital for climate change mitigation, adaptation, and transition solutions. Such investments will cut greenhouse gases, lower our vulnerability to the effects of climate change, and develop clean technologies to replace carbon intensive infrastructure and equipment. These investments might include things such as renewable energy, systems to manage floods, or hydrogen-powered vehicles. In 2023, global investments in solutions like these totaled $1.8 trillion. However, experts say that investments of at least $3 trillion are needed annually to reach net zero targets. And there’s real urgency to this: Last year was the warmest on record since at least 1850. The time to invest in our future is now.

Where should climate activism go in the next year?

Climate solutions such as electric vehicles or battery storage require massive amounts of lithium and other mined metals. However, as these technologies gain traction, climate activists can help ensure that the minerals used in these devices are ethically sourced. Institutional investors like CalPERS have a fiduciary duty to ensure that their assets are never deployed in service of abusive or illegal labor practices. We know that better labor practices increase productivity and, therefore, financial returns. To that end, CalPERS developed a set of labor principles to promote safe and healthy working environments and that call for the elimination of compulsory or child labor. We have already seen other investors adopt similar policies. As the clean energy revolution advances, we have to think about climate activism from the broadest lens possible in meeting our duty to our members.