The need for a green COVID-19 recovery
In June, leading businesses and investors, including HSBC Global Asset Management, wrote to both EU leaders and the UK Prime Minister highlighting the ongoing need for a recovery from COVID-19 that includes environmental and sustainability considerations.
The letter to the UK Prime Minister was signed by more than 200 leading UK businesses across multiple sectors and asks the government to deliver a recovery plan that builds back a more inclusive, strong and more resilient UK economy, aligned to the legislated target of net zero emissions by 2050. The letter calls for continued action ahead of next year’s COP26 summit and the G7, which will both be hosted in the UK and seeks a ‘just’ recovery that can drive investment in low carbon innovation. The focus should be on sectors that best support sustainable growth, and ensure that businesses receiving financial support packages are well managed and similarly focused on national climate goals.
The European letter was coordinated by the Institutional Investors Group on Climate Change (IIGCC), Principles for Responsible Investment (PRI) and CDP, represents 109 investors with €11.9 trillion in assets under management. Its recommendations including the prioritisation of human relief and job creation, as well as net zero emissions economic solutions, support for the Green Deal and upholding of the Paris Agreement, and investor participation in the recovery planning, whilst also calling for member state accountability.