An investor group with $37 trillion in assets has urged governments to step up efforts to fight climate change and meet the goals of the Paris Agreement.

In a joint statement issued Monday at the United Nations Climate Conference (COP25) in Madrid, 631 institutional investors demanded the phasing out of thermal coal power, fossil fuels subsidies and the introduction of a meaningful price on carbon pollution.

The initiative, signed by big asset managers like Allianz Global Investors, UBS Asset Management and BBVA, called for the strengthening of nationally-determined contributions to achieve the Paris Agreement targets.

They wrote: "The global shift to clean energy is underway, but much more needs to be done by governments to accelerate the low carbon transition and to improve the resilience of our economy, society and the financial system to climate risks."

The group warned that current government commitments have resulted in an "ambition gap" that could lead to global average temperatures rising beyond the 1.5-degree threshold.

It said companies should also furnish investors with accurate climate-related financial data and asked the authorities to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) worldwide.

The letter added that to ensure a smooth transition to a low carbon economy and to adapt to the warming already locked in to the climate system, it is critical that the benefits of gaining access to cleaner energy sources are shared by all, and workers and communities affected by the transition are supported.

Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change (IIGCC) said: "Investors are clear that governments should be much more ambitious in addressing climate change.

"The science shows we need to achieve climate neutrality by 2050 at the latest. Several leading economies have already set net-zero emissions targets and other countries must now follow their lead."

The concerns voiced by investors at COP 25 follow on the heels of a report by the Principles for Responsible Investment (PRI), a UN-supported finance network, which warned that stringent government-crafted climate regulations could wipe up to $2.3 trillion off the value of companies engaged in fossil fuel production agriculture and automobiles by 2025.

PRI Chief Executive Fiona Reynolds said: "As the realities of climate change catch up, social pressure mounts, and low carbon solutions get cheaper, it's highly improbable that governments will be allowed to let the world sleep-walk into greater rises in temperature without being compelled into forceful action sooner."