President Panuelo Advocates for Aligning Investment Strategies to National Climate Goals
PALIKIR, October 19th 2021 (FSMIS) — His Excellency David W. Panuelo, President of the Federated States of Micronesia (FSM), and in concert with His Excellency Surangel S. Whipps Jr., President of the Republic of Palau, has advocated for the global investment community to consider adopting the FSM’s and Palau’s approach to aligning national investment strategies with national climate goals, and environmental values of low-carbon investments.
The President’s advocacy can be seen here: https://www.ft.com/partnercontent/wilshire/aligning-investment-strategy-to-national-climate-goals.html
Learn more about aligning national investment strategies with national climate goals here: https://www.wilshire.com/research-insights/esg
The FSM has adopted the approach of aligning the Nation’s investment strategy to its national climate goals through Public Law No. 22-06. The law amended the FSM Trust Fund Act to recognize the existential threat of Climate Change, and mandate that the investments made in the Trust Fund follow a sustainable investment policy that integrates the considerations of the risks and opportunities coming from a global transition into a lower carbon economy, such as renewable and clean energy.
Through this national legislation, investment policy for the FSM Trust Fund will avoid investments in companies whose value will be negatively impacted by the global movement into lower carbon alternatives, and will also seek to support investments in companies that lead the global transition into a lower carbon future.
The FSM Trust Fund was originally created to provide a sustainable and permanent sovereign wealth fund that can support the Nation’s financial independence. Given that Climate Change is one of the ultimate challenges of this generation—sufficiently ultimate that, if it’s not addressed, there may not be future generations—the FSM National Government is giving attention and priority to investing in renewable energy, and encourages countries around the world to consider adopting similar approaches.
Public Law 22-06 can be found in full here: https://gov.fm/files/PL_22-06_FSM_TRUST_FUND_docx-min.pdf