The key challenge is to turn long-term commitment into immediate action. While we need to decrease greenhouse gas emissions with 50% by 2030 in order to limit global warming to 1.5 degrees Celsius, the latest stocktaking by the UN revealed that the climate policies of all national governments will lead to a meager 0.5% reduction by 2030. This means the gap between these two is approximately hundredfold.
Investors are ready for governments to turn commitment into action. Robeco recently published a survey covering 300 large investors representing approximately 20% of global assets. Close to 90% indicate that climate change is or will be central in their investment policies in the next two years. A majority is or will be committing to net zero. And around a quarter are actively decarbonizing their portfolios.
Decisive public policies will accelerate further action from investors and industry. In that way, the gap between ambition and action can quickly be bridged. The biggest risk of climate change is inaction, so let us take all opportunities to act now.
Lucian Peppelenbos, Climate Strategist at Robeco