Transformation for transition to a low carbon economy.
The global warming of the 20th century is, given the perspective of the previous millennium, unprecedented. Multiple paleoclimate studies and climate models are only able to explain this by the addition of the human-caused increase in greenhouse gas concentrations that started with the Industrial Revolution, primarily CO2 from burning fossil fuels and methane from oil and gas production and agriculture.
The impact of rising global temperatures represents an existential threat to the planet. Decisive global and national action is required for transformation to a net zero carbon economy where remaining greenhouse gas emissions are balanced by removals. In 2019 the UK set a net zero target for greenhouse gas emissions by 2050, however the real challenge is to establish the strategies, policies and movement to ensure that we deliver on this promise.
Companies aiming for best in class in five years time need to put in the effort now to start plotting a path towards a Net Zero economy that addresses climate risk exposure, stays ahead of new and emerging statutory and regulatory obligations, demonstrates ESG excellence to customers, clients and finance providers; and identifies new low carbon business opportunities. Companies that do not put in this effort now risk not being here at all in five years time.
The choice now for those operating within the financial system is to surf the waves of societal and technological transformation that will reshape our economies during the 2020s, or be drowned by them.
EIT Climate-KIC
ALIGNING FINANCE FOR THE NET-ZERO ECONOMY: new ideas from leading thinkers
#3 INNOVATION AND TRANSFORMATION: WHAT IT WILL TAKE TO FINANCE NET ZERO
Richard Roberts and John Elkington
Corporate governance systems and processes for the 2020s need to support boards in articulating and demonstrating their leadership and performance in these areas:
Net Zero: COVID19 recovery needs to be built around UK’s decarbonisation strategy for Net Zero by 2050, this will increasingly be reflected in new policy frameworks and increasingly stringent regulatory targets.
Climate Risk: meeting financial and insurance risk disclosure obligations (TCFD, PRA 3/19); managing climate change risks, mitigations & adaptations, identifying low carbon economy opportunities.
Sustainability and ESG: due diligence against quantitative performance metrics (e.g. SASB standards) and qualitative frameworks such as TCFD, ability to position as verifiable premium sustainable product/service, impact demonstration through complete and interrogatable performance history.
Agilis can help your organisation to address these challenges and opportunities in a straightforward clear and structured way, through the tailored deployment of our partner CGR’s established risk and compliance software platform.