Decarbonisation: seeking stratospheric performance
Decarbonisation was one of the biggest themes of 2019 and 2020. Rightly so, we would argue. With the 2021 United Nations Climate Change Conference (COP26) taking place in November, this could be another important year for decarbonisation.
Global temperatures are currently on a trajectory to increase by nearly 4°C above pre-industrial levels, which would be truly catastrophic, unless action is taken.
As this is a systemic global threat, both the public and the private sectors must contribute to the solution today; neither can defer responsibility to others or wait to act.
Yet the action required to decarbonise the global economy is not just a social imperative; we believe it can also be an opportunity to align portfolios with climate objectives and invest in a long-term growth market focused on effecting positive change. Indeed, an estimated $130 trillion of investment is needed to achieve global net-zero emissions (including $20 trillion by 2025)² – an essential investment in our future world, but also an investment opportunity itself.
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