Investing in a Decarbonizing Economy: A TCFD-Aligned Approach
Benedict Buckley, CFA, Portfolio Analyst
COVID-19 changed the world dramatically in 2020 and the focus is rightly on tackling the virus and reopening economies around the world. At the same time, many policymakers have made the connection between the pandemic and climate change as two types of systemic risks to global society. In this way the pandemic has drawn attention to climate policy, with governments approving nearly $1 trillion in stimulus funding (as of January 2021) aimed at cutting greenhouse gas emissions or aiding climate adaptation.1 At the same time, 2020 marked the five-year anniversary of the Paris Climate Agreement, where nearly 200 countries set a goal to limit global warming to well below 2° Celsius, preferably to 1.5° Celsius, compared to pre-industrial levels.
