Net Zero

Central bank explores the possibility of favouring issuers “performing strongly in pursuit of net zero” and ruling out those without credible transition plans

The tool is aimed at helping all investors achieve net zero emissions by 2050

Duncan Austin argues that the need for net zero reveals there have been two interpretations of sustainability all along.

The latest developments in sustainable finance

The report will underpin international climate negotiations at this year’s COP26

In this full-length PDF version of an RI Long Read article, Duncan Austin argues that the need for net zero reveals there have been two interpretations of sustainability all along.Four decades after sustainability first emerged as a concept, we are witnessing a critical ‘net zero moment’. First gradually, and now suddenly, companies are making ‘net zero’ pledges to reduce carbon emissions in line with the Paris Agreement. This represents a substantial and welcome upgrade of ambition regarding climate change, but poses the obvious challenge. In March 2021, a survey by Standard Chartered found that 64 percent of senior corporate executives do not believe that net zero commitments are commercially viable, contradicting the longstanding ESG narrative that ecological sustainability is a ‘win-win’ – good for profit and planet.Download the PDF to read the article.

Governments must ensure that financial systems align with climate targets, argue Iskander Erzini Vernoit and Kate Levick. Here’s how.

The latest developments in sustainable finance

£500bn advisor to develop framework assessing ‘effectiveness’ of investment managers’ stewardship as part of seven-point climate plan