It's clear that debate has shifted from what to expect from, to what it means that now that the world's biggest economy, the United States, is back in the global climate tent. The watchwords of the day were: collaboration and action. If you missed Day one of this 2021's Sustainable Finance Week, here's 10 key takeaways from the day:
- ESG is at the heart of the debate about the future of
capitalism.
- The year delay to COP26
has galvanised support. It's an Olympic
year, COP26 is 'where we get fit'. It is where we come
together.
- The need for global collaboration is absolutely
key. Let's not make perfection the enemy of
good.
- The financial service sector has shown what can be achieved.
What the world needs now is one set of standards. Cop26 could
really break this log jam.
- Finance should be at the heart of COP26. Getting the biggest
pools of capital moving together is the single biggest
challenge.
- Translating emissions into something we can measure is key.
This means greater disclosure, stronger governance, rigorous
auditing, which leads to clearer risk / returns
(accountability). The markets will price the
rest.
- Expect agreement on global accounting standards this year. This
is an important step in informing the investment making
process.
- Divestment is not the same as net zero. Engagement is
going to be key, especially in emerging markets.
- For corporates, the opportunity is to use greater disclosure to
show businesses are ready for the economy of the
future.
- How we decide to fund the transition is very important. How we make it 'just' is equally important. The public and private spheres need to come together to achieve this.
For more information about Guernsey's finance industry please visit www.weareguernsey.com.
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