COP26: Investor action on climate
To build momentum towards COP26 - set to be hosted by the UK in Glasgow next year - the PRI and London Stock Exchange Group are hosting a webinar series, Investor Action on Climate. HSBC Global Asset Management’s Stephanie Maier, Director of Responsible Investment, took part in the second webinar of the series focused on the climate transition.
Mark Carney spoke on the opening panel, positioning climate scenario analysis as crucial in the ESG process and highlighting the commercial opportunities in the low carbon transition.
Stephanie joined a subsequent panel of leading asset owners and asset managers to discuss how investors can help to drive the transition. She focused her comments on the role of investors in translating ambition into action to support both the raising of ambitions in terms of country decarbonisation commitments and appropriate policy measures, and aligning investment and finance flows to enable this low carbon transition.
The Covid pandemic has presented us with a unfortunate but unique opportunity to respond to the immediate economic crisis in a way that can also address the longer term climate crisis. A number of investors, including HSBC Global Asset Management, have written to national and EU leaders to ‘build back better’ – linking government support to climate commitments and focusing investments into renewable and green infrastructure.
While aligning investment and finance flows presents a number of implementation challenges – in particular around data, tools, methodologies and definitions - progress can still be made. Stephanie outlined our own climate transition scenario analysis work on the roads to a low-carbon transition and commented that while managing climate risks does not look the same for all parts of the financial system, scenario analysis will be critical as the effective implementation of government policies and net zero ambitions undoubtedly rely on climate transition aligned investment flows.
To view the webinar, click here