INVESTMENT
BY SIMONETTA SPAVIERI
COP26 Royal London Asset Management’s Simonetta Spavieri explains what to expect from the historic climate change conference By the time this magazine lands on your doorstep or in your email inbox, the 26th annual United Nations Climate Conference will already be half way through, taking place in Glasgow, Scotland, between 31 October and 12 November 2021. Simonetta Spavieri, Engagement Analyst at Royal London Asset Management (RLAM), outlines below what they expect to see from the conference. For up-to-date commentary on the conference as it happens, visit: www.equilibrium.co.uk/COP26
One thing to look out for at COP26 is the “just transition” agenda, which aims to support the shift to a sustainable and greener future in business and politics. Justice at climate negotiations has been framed in various ways, from intergenerational justice to historic responsibilities. With energy prices now soaring globally due to a range of factors (for example, heightened demand for gas and even geopolitical factors), the potential harmful impact on vulnerable consumers highlights the importance of accelerating the transition to a robust renewable grid less dependent on fossil fuels. A positive outcome this November at Glasgow would be for nations to ratify their commitment to making net zero (you can read more about ‘net zero’ on page 22) socially inclusive. With social impact close to our purpose, RLAM has been a key advocate for incorporating just transition into climate action. We have been vocal and effective in our engagement with energy utilities, with six
of our seven targeted companies incorporating just transition in their climate plans. One of the few positives to take from the complex problem of climate change is that it is inherently solvable from a technological perspective. According to the International Energy Agency, the technologies currently in the market take us half of the way to staying below a 1.5C temperature rise, whilst technologies under development that we know to be technically feasible take us the other half. If the problem is not mostly technical, what is it? Reducing emissions to net zero is a complex political and socio-economic issue. The level of transformation and pace required needs a fundamental shift in incentives and means change will be disruptive. Unless justice is embedded in the way climate action takes place, from government policy to corporate action, we won’t have the societal buy-in required for fast pace change and we may end up creating new injustices.
Find out more To read Equilibrium’s up-to-date commentary on the conference as it happens, visit: www.equilibrium.co.uk/COP26
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