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CDP runs a global environmental disclosure system, enabling investors and other stakeholders to measure and track organizations’ performance in key environmental sustainability areas including climatechange, deforestation, and water security. The new plastics module has been incorporated into CDP’s water security questionnaire.
The CDP Global Water Report (2020) informs us that, when it comes to water security, “The cost of inaction is five times the cost of action.”. CDP and Planet Tracker’s High and Dry: How Water Issues Are StrandingAssets , May 2022 report recognizes that “Water risk is already strandingassets across major sectors of the globaleconomy.”.
The guidelines released alongside the framework provide a standardized methodology to ensure that future government support is aligned with the country’s climate and energy priorities, and precludes funding of discretionary programs not aligned with the framework.
For institutional investor clients that understand the risks that climatechange (and other systemic risks) pose to their portfolio returns, engagement is an invaluable tool to help mitigate climate-related risks. For climate-related financial risks, decarbonisation and real-world emissions reductions are essential.
Creon Butler, Director, GlobalEconomy and Finance Programme at think tank Chatham House, made a similar warning of a “probable sharp adjustment” this month , saying that “financial markets did not yet reflect climate risk” despite the clear severe economic and financial consequences of climatechange.
“The harsh reality is that emissions are continuing to rise,” says Philipponnat, adding that much of the discussion among policymakers has centred around reducing the CO2 intensity of our globaleconomy. As these perilous climate projections unfold, one might expect an inevitable upheaval in the globaleconomy.
Jose Pugas , Head of Responsible Investments and Engagement at JGP Asset Management , explains why scal ing -u p finance between the global north and south for nature-based solutions is essential to tackle climatechange and biodiversity loss. Brazil is the most biologically diverse country in the world.
Financial organisations thus have a major role to play in the decarbonisation of the globaleconomy, yet it is estimated that since the Paris Agreement in 2015, the 60 largest banks have instead invested $5.5 Finance climate action Financing climate action can take many forms, such as green bonds or sustainability-linked loans.
With the globaleconomy heavily reliant on ocean health, a sustainable future is paramount. Changes in the ocean drive weather systems that influence both land and marine ecosystems. What can investors and financial institutions do to support ocean sustainability?
Increasing gas infrastructure must be avoided to avert dangerous climate impacts and strandedassets.”. Instead of slowing down the decarbonisation of the globaleconomy, now is the time to accelerate the energy transition to a renewable energy future.”.
Charlotta Dawidowski Sydstrand , Head of ESG at AP7, explains how universal owner s can exert collaborative pressure to drive sustainable outcomes in the globaleconomy. This, says Sydstrand, creates a “ripple effect” in the globaleconomy.
Some companies will start acting and some won’t; there’s more risk of strandedassets.” What role should investors play? Where there’s a challenge (fulfilling the IMO’s 2023 decarbonisation strategy), there’s opportunity (investing in solutions that will enable the sector to achieve net zero)
Preparing for the storm: The role of UK business and government in improving UK resilience to climatechange in the UK’ explores how leading UK businesses are already increasing community resilience through climate adaptation strategies and action. billion climate finance already promised by Biden each year, by 2024.
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