Investors have urged a clampdown on the world’s biggest polluters and a push for wider adoption of net-zero targets. Some of the most influential investors in the financial district of London have taken the opportunity of the current COP26 event in Glasgow to ask for less talk and more action on climate change.
The COP26 event which ends this week is the largest summit the UK has ever hosted. More than 30,000 delegates, including world leaders, former US President, Barack Obama, John Kerry, US Special Presidential Envoy for Climate, business executives, campaigners and government officials have been present in the Scottish city for the event — the most significant discussion on climate since those held in Paris six years ago.
A number of CEOs gave their views. “Business leaders have a responsibility to step up and address this climate change challenge. And as an asset manager, we are right in the sweet spot — we are trying to direct money and hold the creators of capital to account, while also advising asset owners,” said Peter Harrison, chief executive of Schroders.
He added: “If we are unable to grasp this, we will miss the most important obligation we will ever face. This is not a focus for next year, this is for doing now.” The summit, postponed last year because of the Covid-19 pandemic, is regarded by many as the last chance for 197 countries to agree on measures to fend off catastrophic climate change, and take forward some of the goals set out by the Paris Agreement.
But it is unclear if even the most ambitious climate goals to come out of the event will be enough. Presidents of China and Russia have not attended the summit. The two countries are among the biggest consumers of fossil fuels.
This did not deter the CEO of Aviva Investors, Mark Versey, who called on countries participating at COP26 to follow the UK’s lead on the need for climate transition plans, and require companies to outline their plans for decarbonising investments in line with national targets on a ‘comply or explain’ basis. Publication of these plans should be made mandatory, he said.
Versey also called for policies to make polluters pay for the cost of their emissions in full, via global carbon pricing schemes and a minimum carbon price. “This should be a key focus of the COP26 negotiations,” he said.
CEO of BNY Mellon Investment Management, Hanneke Smits said COP26 has come at “a critical point in the race to meet the goals set out in the Paris Agreement.” She added: “Alignment is required not only on policy, but also on the practical aspects of process and implementation – including time frames where differences can readily occur.” Chris Cummings, CEO of UK fund management trade body the Investment Association, said investors want to see more countries commit to the objectives set up under the Paris Agreement, which aims to limit global warming to 1.5 degrees.
“Failing to achieve this will threaten not just the value of our client’s investment portfolios, but, far more importantly, the health of the planet. Action needs to be taken now,” said Cummings.
In addition to that are the comments of the CEO of the international business of Federated Hermes, Saker Nusselbeh: “A comprehensive strategy developed at COP26 needs to encourage business to put in place short, medium and long-term targets aligned with the Paris Accord.” “We need to make progress now on this existential challenge. The science is clear: if we don’t take action now on emissions, these issues are only set to get worse,” said Catherine McGuinness, policy chair at the City of London Corporation. (The writer is our foreign correspondent based in the UK)
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