Head of Sustainable Investing, Phoebe Stone, discusses the key takeaways from COP26, which took place in Glasgow earlier this month.
Many of the headline commitments made at the 26th UN climate conference are, in the context of history, hugely significant. In 2020, less than 50% of global GDP had committed to net-zero. Today, following commitments made in Glasgow, that figure is 89%.
The International Energy Agency estimates that, if countries abide by the commitments made during COP26, global temperatures could be limited to 1.8 degrees Celsius above pre-industrial levels, from the 2.7 degrees before the summit.
With commitments from countries that are among the world’s largest emitters of greenhouse gases, this is a hopeful sign that countries around the world can work together to tackle climate change.
COP26 was one of the most highly anticipated in history. Whilst some criticise the fact that the Summit didn’t go far enough, often the most effective progress is that which happens through incremental improvements. We are hopeful that the momentum behind the sustainable movement that we are seeing build will go beyond what COP26 achieved and move us closer to a net-zero world.
LGT committed to sustainability early on. We consider it our duty to be mindful of the social and environmental consequences of our business activities and act accordingly. As well as operating carbon neutrally, we have also made a commitment to be a net-zero business by 2030, across our operations and investments. Allocating capital towards companies focused on the long-term sustainability of our planet and people acts as important catalyst for the changes that our world needs. In line with this, we offer clients the option of investing in sustainable businesses through their investment portfolio.