Weekly Roundup June 10
Invert is focused on providing clients and subscribers up-to-date news on net-zero developments, carbon markets, and how many sectors are evolving to meet climate change goals and ESG requirements.
The Net Zero Asset Managers Initiative has reached a total of $16 trillion of assets committed to achieving net-zero greenhouse gas emissions by 2050 or sooner, according to their latest report. A total 273 signatories have now joined the initiative, representing $61 trillion in assets under management (AUM), with $42 trillion of those assets now covered by initial targets and 39% or $16 trillion of those covered by net-zero pledges.
Invert Insights: This global initiative continues to gain significant momentum since it was launched with just 30 signatories and $9 trillion in AUM. If the proportion of AUM with net-zero pledges is maintained for the remaining initial commitments expected this year, more than $22 trillion could be managed in line with net zero by COP27.
Climate Engagement Canada (CEC), a coalition of Canadian investor groups, has announced their CEC Focus List, a group of 40 TSX-listed companies that will be engaged by the finance-led initiative to align expectations and encourage climate risk governance, disclosures, and transition plans to a low-carbon economy. The focus companies were identified as the top reporting or estimated emitters on the TSX and/or those with significant potential to contribute to the transition, and operate across the Canadian economy in a variety of sectors.
Invert Insights: Climate engagement from the financial community continues to set expectations for large-emitters to address their emissions and develop climate action plans in-line with the goals of the Paris Agreement.
Finland has set the World’s most ambitious climate target for a developed country, requiring them to reach net zero by 2035 and net negative by 2040. The target, passed into law by the government, was determined by calculating Finland’s fair share of the remaining carbon budget based on their population, ability to pay to decarbonize, and their historic contributions to climate change.
Invert Insights: This legally binding landmark commitment is a significant step towards climate accountability from a developed economy. Developed economies have benefited significantly from historical unabated fossil fuel consumption and this is believed to be the first attempt to quantify those impacts in developing a climate action goal.