Net-Zero Basics
The focus on net-zero is intensifying
5 minute read The world is running out of time to reach net-zero. At their current rate of emissions, the world’s publicly listed companies are on track to burn through their remaining share of the global emissions budget for keeping temperature rise to 1.5°C by 2026.
What COP26 may mean for institutional investors
In December, MSCI brought together a panel of investment thought leaders to review what happened at the COP26 climate conference and what it could mean for institutional investors in the near term.
How renewable energy is stranding coal
5 minute read The falling cost of power from solar and onshore wind means renewables are increasingly undercutting the cost of both new and existing coal-fired capacity, data from the International Renewable Energy Agency (IRENA) shows.
Coal consumption is on track to rise in 2021
5 minute read Consumption of coal for energy is likely to grow by 6% worldwide in 2021, a report by the International Energy Agency (IEA) shows.
Why banks are critical to reaching global climate goals
5 minute read Banks and other financial institutions play a pivotal role in supplying companies and entrepreneurs with capital they need to create and scale clean energy. Banks’ own stakeholders are assessing the alignment of their bank and its business with key temperature targets.
The latest emissions gap report shows the need for bold action
5 minute read The world is likely to be between 2.6°C and 2.8°C warmer by the end of this century if countries continue putting greenhouse gases into the atmosphere at the rate mapped out in their current plans.
Investors may need all the tools at their disposal
5 minute read Though the target date for net-zero remains nearly 30 years away, the reallocation of capital toward an economy that removes as much carbon and other greenhouse gas from the atmosphere as it puts in is already underway, a report by MSCI ESG Research finds.
Why net-zero matters for investors
5 minute read Climate change is the single greatest challenge humankind has faced and its consequences are already all too apparent. Flooding, fires and drought are harbingers of the dislocation to come if the planet doesn’t slash emissions of greenhouse gases to reduce warming.
How investors can drive the transition to net-zero
5 minute read Investors can play a critical role in the transition to net-zero by allocating capital to companies with achievable net-zero targets, by excluding those with poor records on emissions and by using engagement to influence companies’ long-term strategies.
How net-zero differs from zero carbon emissions
5 minute read Net-zero does not mean zeroing out emissions of carbon and other greenhouse gases. Some sectors of the economy such as transportation or cement production may continue to rely on fossil fuels even if much of the rest of the economy has phased them out.
Estimated costs and opportunities of climate change
Under a minute Though no one can know with certainty, a variety of estimates suggest some of the value at stake. But net-zero is becoming increasingly important for investors, both in terms of minimizing potential risk and also maximizing potential opportunities.
The tie between climate change and biodiversity
5 minute read Climate change and the loss in biodiversity are interrelated. Both threaten nature, human health and well-being, and result from human activity. Both present risks for the financial sector. Action to prevent biodiversity loss also may help to achieve global climate goals, and vice versa.