A year after the United Nations 26th Conference of the Parties, on British shores, the upcoming COP 27 climate conference is taking place in Sharm El-Sheikh, Egypt this November. Key pledges made by governments last year in Glasgow included commitments to end deforestation, cut global methane emissions and to transition to zero emission vehicles. Countries were asked to return to this year’s conference with a plan to strengthen their 2030 commitments.
“A decisive decade for climate action”
Mahmoud Mohieldin, the UN climate change high-level champion for Egypt, hopes the 2022 conference will be an important milestone in what he calls “a decisive decade for climate action.” In his view, COP27 should undertake an “urgent, ambitious, impactful, and transformative agenda, guided by a holistic approach to sustainable development.
Climate change for investors
COP27 will undoubtedly be of interest to investors engaged with climate change, with key announcements potentially impacting their portfolios. Investment decisions have a role to play, and the investment industry continues to play a pivotal role in the global climate transition. One investor initiative – The Net Zero Asset Managers Initiative – has now grown to over 270 investor signatories with over $60trn assets under management, all committed to supporting the goal to reach net zero and investments aligned with net zero emissions.
According to the Principles for Responsible Investment (PRI), a United Nations supported initiative, many are now recognising ‘the enormous opportunity for economic growth and investment returns presented by the transition to net-zero emissions.’ The PRI reflect a firm belief that ‘the financial sector and the investment community will play a central role in the global response to climate change and supporting the transition to a net-zero economy.
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