Due to be held this November in Glasgow, the United Nations 26th Conference of the Parties – COP26 – is recognised as the most important climate change event since the 2015 Paris Agreement. The summit will bring together world leaders to build on the work left unfinished by COP25.
Countries are being asked to co-operate to reduce emissions, with the aim of achieving global net zero by mid-century, as well as mobilising finance, and protecting natural habitats and communities.
The investment industry has stated its intention to play a vital role in the global climate transition. Launched in December, the Net Zero Asset Managers Initiative has grown to over 120 investors, managing $43trn – all committed to supporting the goal to reach net zero and investments aligned with net zero emissions. COP provides an opportunity for investors to consider how they can innovate in developing solutions to solve climate issues and in financing sector transition.
Institutional Investors Group on Climate Change CEO, Stephanie Pfeifer, commented on the popularity of the initiative, “In just six months nearly half of the global asset management sector has committed to achieving net zero emissions with their clients across the funds they manage. This marks a fundamental tipping point across the investment sector and a significant boost in efforts to tackle climate change and decarbonise the global economy. There’s a lot more to achieve, but the sector is increasingly on a path to a net-zero future.”
The value of investments and income from them may go down. You may not get back the original amount invested.