COP26 takes place this week in Glasgow and we asked industry experts what they were expecting from the event. Corné Biemans, portfolio manager, Boston Common Asset Management, says carbon accounting tools will play a role to support net-zero commitments.
Given the alarming findings of the UN’s recent IPCC report, we hope COP26 produces agreements that urgently push governments, companies, and investors to act on climate.
From a policy perspective, governments from across the world, in particular those of large emerging markets, have to work towards mandatory climate disclosure laws. Although many organisations large and small have embraced voluntary disclosure, this is simply not enough. Mandatory disclosure across markets – aligned with the Taskforce for Climate Related Financial Disclosure – would level the playing field for investors and financial supervisors.
Additionally, it’s vital that companies ramp up assessments of climate risks and impacts across their entire value chain. Businesses should be required to provide robust transition plans aligned with the 1.5°C global temperature increase ceiling, including time-bound and science-based emissions reduction targets, strong interim goals for 2025, and enterprise-level climate strategy with board level oversight.
As for investors, we must ensure net-zero commitments are robust, not just a numbers game. This will involve utilising carbon accounting tools across a number of asset classes, and expanding expectations around political and lobbying activities.
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