A Sustainable Future

Prof. Tom Gosling, London School of Economics, on Whether Investors Reset, Recalibrate, or Retreat from Net Zero

13 snips
Jan 29, 2025
In this discussion, Professor Tom Gosling, a specialist in financial markets from the London School of Economics, shares insights on the future of net zero commitments among investors. He examines whether financial institutions will reset their strategies, recalibrate their goals, or retreat entirely amidst shifting alliances. The conversation highlights the complexities of climate initiatives, the evolving significance of the 1.5°C target, and the necessity for genuine engagement in decarbonization efforts. Gosling argues that investor influence, while constrained, remains vital for effective climate policy.
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ADVICE

Align Targets with Political Reality

  • Investors should support the most rapid politically feasible decarbonisation rather than fixed targets.
  • Climate ambitions must reflect local political contexts for effective investor engagement and legitimacy.
INSIGHT

Asset Owners vs Managers Roles

  • Asset owners have longer time horizons and legitimate stakes in climate outcomes, unlike asset managers.
  • A growing market sorting is needed so managers match asset owner climate ambitions effectively.
INSIGHT

Data Vendors Shape Climate Focus

  • Over-influence by data vendors shaped climate targets focused on easy-to-measure emissions over real impact.
  • Portfolio emissions targets often disconnect from actual carbon reductions and real-world decarbonisation.
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