507A7B86-7507-41CB-8F0A-9AD191E32DA5 513D0B9D-7474-4D61-863F-70F1B3696FB7 60F0322F-B5F4-4A4F-B505-A8773B90F3B9 Comments A5B32EC7-3D41-482F-8D63-40B8CC4B0807 86DDA3D7-F193-4FF9-BE89-5AF7F4C92A8F 1FAE3C2F-8600-47BE-8D04-C46DC4FFD6B0 47ACF625-4F24-4613-9C4E-5E81CABE1FBA FB57FEB0-874D-4585-BF2D-FAAE8EBC17F6 AD97905C-02C9-4A07-9EEA-DA1F36CC7FA8 8727CDE7-CFD1-40EA-A8AF-256882E677CA B052573C-CEE4-4CD1-B86F-C9CB0202622C 1FDA88B9-6396-4BE0-B01D-4DC4FA38A632 6CD0F19E-3C61-44FC-9723-C7737416CD7C 62D3F811-1C6C-477C-972B-FE52539070FC•• 1FAE3C2F-8600-47BE-8D04-C46DC4FFD6B0 47ACF625-4F24-4613-9C4E-5E81CABE1FBA FB57FEB0-874D-4585-BF2D-FAAE8EBC17F6 EF459BAF-1347-4C71-9008-BDB3136FCCE8 3BB10396-3999-4821-82D8-3568DE598D06 F3D95CB7-5CF3-4B27-8B55-AA78EDF89759 63057605-E453-4FDE-89BC-ABD2BC6600E2 Views 6CD0F19E-3C61-44FC-9723-C7737416CD7C

Cookie settings

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalized web experience. Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer. Cookie policy

    image image

    Global macro research: nearing the tipping point

    Global macro research: nearing the tipping point

    01 June 2020 Responsible investment, Global macro
    Christiana Figueres

    Christiana Figueres
    Former Executive Secretary of the United Nations Framework Convention on Climate Change (2010 - 2016)

    This decade is the last in which we can make a meaningful difference to avoid the worst impacts of climate change. In this paper, I explore the reasons why, and assess the green shoots of progress that demonstrate how countries and financial institutions still have a chance to respond to this crisis.

    1. Science has been shedding light on the facts of climate change for decades, but the extent of our knowledge is more specific and granular now.

    Five years after the Paris Agreement, scientists now estimate that if the world were to heat by 2°C (as compared to 1.5°C), there would be three times as much infrastructure destruction, biodiversity destruction, human pain and death.

    2. There is already evidence of what a future could look like if we do not attempt to change course.

    Within the last 12 to 18 months, we have seen damage being done to Earth in the form of extreme bushfires. In Australia, for example, fires devastated more than 8 million hectares of Australian territory (an area larger than countries like Scotland, Austria and Panama).

    3. The direction of decarbonisation is irreversible, and businesses are preparing for this new future in a bid to remain competitive in the future landscape.

    A recent study found 65% of the US economy continues to decarbonise.

    4. Asian countries are moving to renewables despite the challenges.

    The governments of these nations understand that in order to bring their populations out of poverty, they must continue producing energy; however, they also understand that fossil fuels are not as benign as we thought decades ago.

    5. Climate change concerns are likely to drive advances.

    Progress will be driven by the standardisation of measurement of environmental, social and governance (ESG) metrics for governments and corporates alike. It is likely to be climate change that is going to be the most-focused-on aspect of ESG factors, for the simple reason that it is the easiest facet of ESG to understand and measure.

    6. ESG is here to stay in the financial sector.

    This is evidenced by the Principles for Responsible Investment (PRI), which has 2,000 institutions as signatories and, more recently, the Principles of Responsible Banking, which includes 130 banks from 49 countries, equating to around USD$47 trillion in assets.

    7. Financial institutions are waking up to new opportunities presented by ESG.

    One such example is the UN-convened Net-Zero Asset Owner Alliance, a group of 20 asset owners, who collectively hold around USD$5 trillion in assets.


    Download PDF
    3018 kb
    Back to top