As the summit of world leaders for the COP26 (UN Climate Change Conference), l’global economy seems to have started running again. The climate change immediately poses new challenges in the background and the meeting on 31 October in Glasgow will be the right time to take stock of the situation. There is a lot to fear, but there is also reason to hope and even get excited. The topic was deepened by a detailed report by Legal & General Investment Management.
The danger of inaction
The first reflection is aimed atinaction. All the latest research on climate crisis in progress converge on one point: inaction is no longer an option for institutions, companies and investors. This is therefore the time to agire, and do it now, to reduce the risks of having to suffer devastating climatic events.
The key factors
I am three key factors which can be highlighted mainly in this phase: there is still a disappointing green fiscal stimulus in the main areas, managers can generate sustainable returns to contribute to the fight against climate change, there is a great need for investments in green technology to accelerate the decarbonisation of the planet.
The ESG turning point
I am elements on which the strategic choices of the politicians, as they get closer and closer to the meeting of the COP26. Financial markets are reaching a turning point on the ESG. Considering the irregular pace on the factors that influence the prices of green products, there are major advantages for investors able to have a clearer vision on the future of companies, sectors and markets.
The long-term view
In short, the sustainability continues to be one of the most powerful investment trends on the long period. The experience of Covid-19 has strengthened the sensitivity of all the players in the field, from managers to customers, with respect to the need to act promptly to better counter the looming threats. And this will increasingly contribute to the spread of the green wave, primarily thanks to the impulse of investors who want to play an active role in the fight against climate change.