Country: United Kingdom
Governments must ensure that financial systems align with climate targets, argue Iskander Erzini Vernoit and Kate Levick. Here’s how. Governments must ensure that financial systems align with climate targets, argue Iskander Erzini Vernoit and Kate L… Governments must ensure that financial systems align with climate targets, argue Iskander Erzini Vernoit and Kate Levick. Here’s how.
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If the past two years have normalised the concept of Net Zero for individual financial firms, the idea of a net-zero financial sector appears to be fast following suit. A recent global survey of more than 1,000 pension funds and insurers indicated that 90% of pension funds and 94% of insurers had either committed to Net Zero or were planning to.
Sector-wide transition is clearly underway.
Against this backdrop, the UK’s independent public advisory body, the Climate Change Committee, published an advisory report in December called The Road to Net-Zero Finance, which recommended the UK lead the world by committing to be the first net-zero finance system.
Last month, in a ringing endorsement of this concept, UK financial institutions responsible for over $5tn in assets penned a letter calling on the Prime Minister to adv…