COP26 AND BEYOND
The make-or-break decade for climate action
If we are to meet the goals of the Paris Agreement, we will need to reduce global greenhouse gas emissions by at least 50% by 2030 and reach net zero by 2050. The pressure is on for governments to set more ambitious climate targets and to clearly articulate how they intend to achieve them in detailed plans known as nationally determined contributions (NDCs). Companies have also developed their own transition plans, often at the behest of their investors.
For more information, see:
- Green means go - helping your company and board deal with climate change
- Climate change plans and targets: key points for businesses to consider
- Climate transition plans will become mandatory in the UK
- Investor activism on climate and ESG
- Investors spell out what they want from governments on climate
- Investors set out expectations of companies on climate risks and opportunities
- EU climate law
- EU “Fit for 55” package
Commitment to net zero emissions by 2050 will only be achieved with significant new investment and a rapid change in the sourcing and use of some of our most fundamental commodities, energy and water. The technological revolution combined with ESG pressure is propelling the global economy towards the energy transition, decarbonisation and adaptation. The response to the climate emergency will be one of the most transformative business drivers of the next few decades.
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The net zero transition requires a massive reallocation of private and public capital towards greener, more sustainable activities. However, investors need data that is relevant, reliable and comparable to reorient capital flow. Companies and financial organisations are also having to combat greenwash allegations and manage litigation risks associated with their climate disclosures.
For more information, see:
- TCFD consults on climate metrics, targets and transition plans
- EU Draft Corporate Sustainability Reporting Directive
- UK paves way for mandatory TCFD climate disclosure by 2025
- What does the UK Greening Finance Roadmap and new disclosure regime mean for corporates?
- US SEC climate change disclosure proposal
- US climate change disclosure – What should companies be thinking about?
- How to protect yourself against greenwashing risks
- Latest developments on greenwash allegations
- Climate Change Litigation
Carbon pricing – be it a carbon tax, emissions trading scheme or the EU’s proposed CBAM – has the potential to incentivise the reduction of greenhouse gas emissions significantly. Some would argue that a global carbon price is key to unlocking the net zero transition. But what form should that take?
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