Ceres CEO & President Mindy Lubber issued the following statement at the conclusion of the United Nations Climate Change Conference of Parties (COP26) in Glasgow, Scotland:
“As COP26 winds down, it is both possible and appropriate to hold two perspectives at once. The conversations, compromises, and commitments of the last two weeks represent meaningful and significant progress in confronting the climate crisis. At the same time, that progress is not enough to prevent the worst outcomes of this growing crisis or to build the just and sustainable economy that our future demands.
“COP26 brought progress on many fronts, securing a global consensus aimed at limiting coal and fossil fuel emissions, encouraging countries to strengthen their plans as soon as next year, and committing greater funds to help poorer and developing nations. It also brought large multilateral commitments to dramatically reduce methane pollution and end deforestation, as well as smaller but important pledges by countries to end financing for fossil fuel development abroad and phase out new gas-powered car sales. Additionally, the U.S. and Chinese governments agreed to work toward greater climate action in the coming decade, and we encourage both countries to leverage this pact to advance stronger and more detailed commitments in the coming years.
“In the lead up to COP26, investors and companies around the world showed that they support the goals of the Paris Agreement, and the necessary actions to reduce greenhouse gas emissions in line with those goals. Indeed, one of the most significant developments at COP26 was the record 92 new asset managers who joined the Net Zero Asset Managers initiative, committing to set shorter term targets for reducing emissions within their investments by 2030 and issuing investor climate action plans within one year of joining the initiative. The asset managers join the 50 asset owners in the Paris Aligned Investment Initiative who have made similar commitments. Between these two initiatives, there are now some 270 investors managing nearly $60 trillion in assets, more than half of the world’s total managed assets, committed to do their part to help stave off this crisis.
“But private sector action alone is not enough. Here in the U.S. leaders must enact national and state policies that will help investors and companies stand by their climate commitments, develop more aggressive targets, and strengthen climate transition action plans. We know investors and companies in the U.S. and around the world want these policies. In fact, 733 investors and 750 companies signed statements of support for these policies, and it is disappointing that COP26 did not result in more policy progress, particularly around mandatory climate risk disclosure. But, we will keep pushing for more. UK Chancellor Rishi Sunak deserves praise for his requirement that asset managers, asset owners and listed companies publish transition plans for decarbonizing by 2050 or sooner. Ceres and the other founding partners of the Investor Agenda have long called for investors to develop and implement Investor Climate Action Plans for decarbonizing their portfolios by 2050 or sooner and reaching interim emissions reduction targets by 2030. The US government and governments around the globe should follow the UK’s lead.
“These past two weeks — and especially the urgent pleas from island nations — have also underscored that large emitters have an obligation to help fund this net zero transition in the countries that are most vulnerable to this crisis and least responsible for causing it.
“After a year of intensifying climate disaster and ‘code red’ warnings from international scientists and experts, it is vital that investors, companies, policymakers—all of us—work urgently together to achieve a higher level of ambition. Taken together, there can be no doubt that the commitments of these two weeks will reduce the economic and financial—and human—toll of the next climate catastrophe. But the question now is whether it will be enough. The answers will fall to the investors, companies, and policymakers around the world that now have a responsibility to raise their ambition to keep the 1.5°C temperature goal of the Paris Agreement alive and ensure an equitable net zero transition that addresses the concerns of historically marginalized and disadvantaged people and communities.”
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.