The sustainable investor for a changing world
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COP26: Tackling climate change

 

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The UK will host the 26th session of the UN Conference of the Parties (COP) between 31 October and 12 November 2021. The summit will bring parties together to accelerate action on tackling climate change.

According to the COP26 website, action should centre around four key goals: (1) Securing global net zero by mid-century and keeping 1.5 degrees within reach; (2) Protecting communities and natural habitats; (3) Mobilising finance; (4) Working together to deliver.1

 

THE CLIMATE CRISIS

The science is unequivocal and the evidence is growing ever stronger: climate-related risks are larger, and coming through more rapidly, than previously thought.

For example, 2020 tied 2016 as the hottest year on record, with devastating wildfires and droughts across the globe.2 Fires charred an estimated 186,000 square kilometres in Australia, 43,000 square kilometres in the Brazilian Amazon, and 17,231 square kilometres in California.3,4,5

As the world gets warmer, the potential damage intensifies. Failure to limit temperature rise to 1.5 degrees could create health problems and more heat-related deaths, increase the likelihood of serious conflict at international and regional levels, and force hundreds of millions of people to migrate. The impact on biodiversity and food systems would be catastrophic too, much of it irreversible.2 We must act now to turn the tide on climate change.

 

WHAT WE’RE DOING TO HELP

BNP Paribas Asset Management is the sustainable investor for a changing world.

Plant growing in hand picto We integrate ESG factors across all our strategies and aim to align all portfolios with the Paris Agreement by 2025
voting-pictogram We practice stewardship through shareholder engagement and participate in several climate initiatives such as the IIGCC
stack-leaf-pictogram We apply responsible business conduct policies and product-based exclusions including coal companies
Globe_windturbine We focus on key sustainability issues: the energy transition, the environment and equality and inclusive growth
press-conference-pictogram We promote awareness about the role finance can play in achieving a more sustainable world

 

For more information on how we’re addressing climate change, including our active membership in the Climate Action 100+ initiative (CA100+), please see our 2020 Sustainability Report.

 

HOW YOU CAN HELP

By allocating capital towards strategies that invest in companies that provide concrete solutions to specific environmental challenges, investors can target positive social and environmental change alongside financial returns.


ESG: Environmental, Social and Governance

IIGCC: Institutional Investor Group on Climate Change

  1. COP26 Goals, United Nations, 2021
  2. 2020 Tied for Warmest Year on Record, NASA, 2021
  3. Australia’s Bushfires, Science Alert, 2020
  4. Fires Raged in the Amazon Again in 2020, Earth Observatory, 2020
  5. Pace of California wildfires well ahead of disastrous 2020, ABC News, 2021

DISCLAIMER

Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.

The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.

Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.