Climate takes top priority for new Macquarie Group boss

Macquarie CEO calls for ‘significant and urgent’ rise in clean energy investment after landing powerful new UN finance role.

Macquarie chief executive Shemara Wikramanayake. Picture: James Croucher.

Macquarie Group chief executive Shemara Wikramanayake has called for a “significant and urgent” rise in clean energy and climate investment after being appointed to a powerful new United Nations finance group on climate change.

The Climate Finance Leadership Initiative, spearheaded by Bloomberg founder Michael Bloomberg, was formed at the request of UN Secretary-General Antonio Guterres. Its founding members are among the world’s most powerful finance executives, including Goldman Sachs chief executive David Solomon, AXA chief Thomas Buberl, HSBC chief John Flint, Government Pension Investment Fund (Japan) executive managing ­director Hiro Mizuno, Enel chief Francesco Starace and Ms Wikramanayake.

The group has a mandate to accelerate investments in clean energy and climate solutions, and facilitate private financing objectives included in the Paris Agreement.

“Through innovative partnerships and projects, members are committed to working ­towards the goal of making ­financial flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development, as specified in the Paris Agreement,” according to a Bloomberg statement.

The CFLI will deliver an ­interim report on best practices and obstacles to deploying climate finance to G7 finance ministers in July, and a final report at the UN Climate Summit in ­September.

Macquarie has ramped up its investments in renewable and clean energy over the past five years, including its completion last year of the acquisition of the British government’s Green ­Investment Bank.

“The world requires a significant and urgent increase in ­annual climate investment,” Ms Wikramanayake said. “This mission will require every part of the green investment community — in the public, private and third sectors — to pull together to scale up best practice, remove barriers to investment and deliver innovative new solutions on an unprecedented scale.

“I’m proud to support this new initiative on behalf of Macquarie and look forward to collaborating with such expert partners to do everything possible to help mobilise the full commitment and creativity of the finance industry.”

Macquarie’s balance sheet positions in green energy total $1.3 billion, including wind farm and solar development investments.

Goldman’s Mr Solomon said: “Our commitment to this issue dates back many years and connects to the core of what we do as a global financial institution, but there is no question that today there is greater urgency.”

Mr Bloomberg, a former mayor of New York, said an acceleration in climate investment projects that reduced emissions and created jobs would lead to advances in reducing health and economic risks linked to climate change.

“This initiative will help us do that, by bringing more capital to the fight against climate change,” he said.