The UN climate change conference COP26 was a watershed moment for ESG investors, providing an opportunity to illustrate why and how aligning portfolios is key in addressing the climate emergency.
The challenge in Glasgow should by no means be underestimated, more so with the absence of key countries like China and Saudi Arabia, which all have an important role in reducing global carbon emissions. The recent report by the UN’s Meteorological Organisation highlights greenhouse gases rose more in 2020 than the average for the previous decade.
The major catalyst remains the burning of fossil fuels, which has left methane levels at double the amount from what they were in 1750. The efficient allocation of capital into key areas of the economy by all investors, not just ESG specialists, will play a key role in delivering a less carbon-intensive future.