Overview

In November, the United Nations Climate Change Conference (COP26) was hosted in Glasgow. This event brought together world leaders to progress the goals of the Paris Agreement to limit global temperature rises to 1.5^oC and reduce carbon emissions. Reaching this target requires concerted policy action and is dependent on countries accelerating their plans to reach net zero emissions. Significant change is needed over the next decade.

The global scale of the challenges ahead can often feel insurmountable, but financial institutions will have a significant impact on whether or not we are successful, reflected in the “mobilise finance” goal of COP26. 

This session explains how insurers and other financial institutions can achieve positive real-world impact to reduce climate risks. We take a closer look at Universal Ownership, a novel concept which explains why firms should achieve real world impact, even if they are focusing on their fiduciary duties. We also explain exactly how to achieve impact, covering a number of specific techniques that can be considered, and explore the importance of banks as well as tail risks.