Tackling climate change is urgent
Our challenge is to limit global warming to 1.5°C.
The 20 warmest years on record have been in the past 22 years, with 2015-2018 the warmest yet, according to the World Meteorological Organization.
As of November 2020, 194 nations in addition to the European Union have signed the Paris Agreement, which aims to limit global warming to well below 2°C, and preferable 1.5°C above pre-industrial levels.
To meet these goals, a multi-pronged approach is needed. Companies, investors and governments must prepare for a profound reassessment of risk and asset value and a significant reallocation of capital. Of course, we need to invest in climate solutions.
However, we also need to shift large core holdings into more climate-friendly investments.