Climate change represents a systemic risk to our environment, our society and consequently our economic and financial systems.  Striving towards the goal of net-zero emissions is going to require investment in both mitigating the potential impacts of climate change, and adapting to the changes in our climate that are already taking place.  This will create opportunities for investors. 

Our Net-Zero: Focus on Change series explores some of these issues, areas where investors may wish to consider allocating capital and the broader stewardship activity that asset managers may want to take.

In the first article of this series, we explore how transitioning to net-zero could impact jobs. As we all know that to successfully achieve net-zero emissions by 2050 and limit global warming to 1.5°C, economies worldwide need to engage in widescale industrial change and restructuring. What’s perhaps less of a focus but critical for any chance of ‘success’ is the need for the transition to be fair and just to those people who are most affected.

Goal 8 of the UN’s Sustainable Development Goals outlines the need to provide ‘decent work for all’ – e.g., suitable employment for those employed in sectors that will no longer be viable in a decarbonised economy. The opportunity to ‘level up’ other social inequalities should be part of a ‘just transition’ too.

DOWNLOAD THE ARTICLE HERE

If you would like to explore how climate opportunities may be factored into your investment arrangements, please contact us, or your usual Hymans Robertson's consultant.