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Former chair of the Committee on ClimateChange Lord Deben believes the country can get back on track to net zero and regain its status as a global leader. When Glasgow hosted COP26 in 2021, bringing together 120 world leaders and more than 40,000 participants, the UK was seen as a world leader in the battle against climatechange.
The day-long session focused on aligning financial policy with Canada ’ s climate goals, including federal commitments under the ParisAgreement to reduce GHG emissions by up to 45% below 2005 levels by 2030 and achieving net-zero emissions by 2050. .
The shrivelled Rhine of 2018 became a harbinger of the devastating impact that climatechange will have on the backbone of the German economy. You’d expect a company so directly affected by climatechange to be jumping on the decarbonization bandwagon. On the face of it, it is.
A stark choice between climate stability and global devastation is the constant drumbeat from a landmark report released today by the Intergovernmental Panel on ClimateChange (IPCC). Already, “widespread and rapid changes in the atmosphere, ocean, cryosphere , and biosphere have occurred,” the report says.
By: Chris Lewis, Global Infrastructure Leader at EY At COP27 in November last year, there was an overwhelming consensus that the target of lowering global temperatures by 1.5 ° C – as outlined in the historic ParisAgreement – is now at risk of not being met, unless the world acts now.
The Fine Print on Carbon Credits The definitions in the federal document take a fairly expansive view of “inefficient” subsidies that “encourage wasteful consumption, reduce our energy security, impede investment in clean energy sources, and undermine efforts to deal with the threat of climatechange,” as the G20 defined the term in 2009.
Thierry Philipponnat, Chief Economist at Finance Watch, warns that economic modelling must evolve to prompt policymakers to take action on climate. As these perilous climate projections unfold, one might expect an inevitable upheaval in the global economy. The purpose is to evaluate the impact of climatechange on the financial system.
Creon Butler, Director, Global Economy 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.
Invesco, AP4 evaluate potential of integrating climate alignment in portfolio srategies, reflecting investor appetite to move away from purely backward-looking approach. Choosing the right method to measure portfolio emissions is crucial to investors’ alignment with the ParisAgreement, and should reflect their strategy.
Commenting on the updated targets, Follow This founder Mark van Baal accused the company of “backtracking” on its climate ambitions, putting the company’s future at risk “through policy interventions, disruptive innovation, strandedassets, and accountability for the costs of climatechange.”
COP28 reminded investors of the difficulties involved in reaching inter-governmental consensus on intensifying climate action. C of warming, the Inevitable Policy Response calculates that current government policies, ie those in place pre-COP28, will only limit climatechange to 1.8°C
A common message from Professor Jeffrey Sachs, Director of SDSN, is the critical need to articulate a clear long-term vision and not an incremental approach in order to avoid strandedassets and technology lock-in which will inhibit the energy transformation necessary to achieve the ParisAgreement goals.
Financial organisations thus have a major role to play in the decarbonisation of the global economy, yet it is estimated that since the ParisAgreement 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.
When it comes to gathering the collective will to tackle climatechange, it is often argued that public policy actions and private sector commitments are mutually reinforcing, spurring each side to go further and faster. The private sector’s ability to accelerate the pace of net zero transition is open to question.
Good engagement supports an investor’s climate ambitions and reduces their exposure to strandedasset risks.” That end point has, in fact, already been met by a growing pool of investors. The post Options Still Open for Fossil Fuel Engagement appeared first on ESG Investor.
In examining sustainability pressures and financial risk in the blue economy, WWF warned that if ocean resources continued to be extracted at current rates, “we increase the risk of ‘strandedassets’ materialising in portfolios, i.e. through assets suffering unanticipated or premature write-offs, downward revaluations or conversions to liabilities”.
Noting that the number of court cases being brought against companies on climate-related grounds has recently topped 2,000, the report says some plaintiffs are seeking to recover the costs of climatechange itself, or the expense caused by having to adapt to it. Resort to the courts. Vital role of non-execs.
This post originally appeared on ClimateChange News. The street and the boardroom are closer than they have ever been on climate. The Glasgow Climate Pact and recent pledges have kept 1.5°C After the ParisAgreement the message was clear: Ambition, Ambition, Ambition. C alive, just.
C, in line with the ParisAgreement goal. . “If The report warns that fossil fuel demand will peak as government policies to cut emissions, asset owners’ net-zero commitments and the rapid growth of clean energy technologies combine to transition the economy towards renewables.
Swedish government pension fund AP7 is a universal owner that manages around SEK1 trillion (US$968 billion) in AuM, with 90% of its assets invested in a diversified equities portfolio across more than 3,000 companies. The post The “Ripple Effect” of Universal Ownership appeared first on ESG Investor.
Global temperatures are set to hit record-breaking levels this summer, with regions of persistent high pressure creating heat domes across several southern US states in June, posing health risks to millions of Americans.
In late April, the UK High Court ruled that charity trustees can consider climatechange factors when making decisions over their investments, even if it means making lower returns. How should I respond to wider systemic risks – and opportunities – such as those presented by climatechange?
Some companies will start acting and some won’t; there’s more risk of strandedassets.” What role should investors play? The Organisation for Economic Co-operation and Development (OECD) has estimated that maritime trade volumes will triple by 2050. Encouragingly, governments are also demonstrating a willingness to work together.
And while there are instructive parallels with the catalytic impact of the ParisAgreement on identifying and mitigating climate risks by the private sector, there are also important differences. For investors and companies with assets within those key biodiversity areas, this raises the issue of strandedassets.
At COP26 in Glasgow last year, governments, businesses, and other stakeholders in the automotive industry and road transport committed to “rapidly accelerating the transition to zero emission vehicles to achieve the goals of the ParisAgreement”. Costs are rising for laggards in a number of ways.
If an oil and gas company announces a 2050 net zero target but doesn’t show any changes to capex (for example, shifting to renewable energy) or asset valuation (to account for strandedasset risk) this could make investors and other stakeholders doubt the credibility of the company’s transition strategy,” Wartmann says. .
The idea to utilise voluntary markets is “a good one”, as it’s “part of the principle of ‘cooperative action’ enshrined in the ParisAgreement,” Guy Turner, CEO of specialist data, analysis and advisory firm Trove Research, tells ESG Investor. . “It degrees of climatechange. . The deal committed US$8.5
While Group of Seven governments are announcing grand plans , asset owners in developed markets are increasingly keen to play their part in this transition. . The IEA blueprint involves unprecedented levels of change, the agency admits, and requires clear government strategies and policies. of GDP), with two ?
That led me to connect with [former Canadian environment and climatechange minister] Catherine McKenna, and she said, Mara, why dont we join forces? Because she started this initiative Women Leading on Climate in Glasgow. Men and women are worried about climatechange: 46% of men, 49% of women. Women are ready.
SATURDAY 13 NOVEMBER – This statement is the We Mean Business Coalition response to the Glasgow Climate Pact, agreed at COP26. . The Glasgow Climate Pact represents a vital step in our shared efforts to keep global warming to 1.5 °C C and implement the ParisAgreement and will be welcomed by the business community.
The global fight against climatechange is gradually gaining momentum, with countries like Canada, China, Germany, India, Japan, and the EU reaffirming commitment to the ParisAgreement, and more than 80 mayors in the US confirming that they will continue with agreed guidelines.
As reported by Newsweek , an NCSE survey revealed that teachers offer their students very little climate education and when they do, it is often inaccurate (60% of teachers are unaware of the scientific consensus on climatechange). A total of 208 educational institutions have divested their assets from fossil fuels.
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