The pandemic has been a powerful reminder of our shared fragility and has driven society to accelerate climate efforts in a bolder way. Amid all the suffering and disruption caused, we are seeing a historic shift globally towards a net-zero future by governments and corporations . 127 governments*, responsible for around 60% of global emissions, have committed to a net-zero pathway.

 

In addition to major policy developments, we are also seeing a profound shift unfolding in the financial markets. More and more investors are choosing to allocate their investment capital towards sustainability-focused companies. Every executive team and board will need to consider how this will impact their own company’s future performance, reputation and valuation.

 

We believe the 2020’s and 2030’s will be viewed as the energy and climate decades. There will be no company whose business won’t be profoundly impacted by the transition to a net-zero future; a future where we emit no more CO2 than we remove from the atmosphere.

 

As these trends further accelerate, companies with clear long-term strategies and detailed plans to achieve their own net-zero pathways will flourish, distinguishing themselves with stakeholders and society at large. Companies that do not change or who are not prepared, and have no net zero plan, will flounder.

 

Net-zero will demand unprecedented global collaboration, major new innovations, incredible levels of commitment and investment, the transformation of consumer behaviours and the rethinking of the entire global economy.

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In order to contain global warming to less than 2 degrees, we need to reduce human derived emissions by 8-10% annually between now and 2050 to achieve net zero by mid-century. The transition must also be fair, just, and protect people’s livelihoods. 

This is one of the greatest challenges humanity has ever faced.

 

All of this can only be achieved with courageous bold leadership, a sense of profound conviction, and unprecedented global collaboration.

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As of March 2021*