More than 120 world leaders have arrived at the COP27 summit in Sharm el-Sheikh.
Secretary-General Antonio Guterres opened the summit by responding to a UN report released on Sunday, which states that the past eight years were on track to be the warmest on record. Mr Guterres sent a video message to the conference in which he called the State of the Global Climate Report 2022 a "chronicle of climate chaos".
This follows a year that brought catastrophic flooding to Pakistan, wildfires in Europe, and drought around the world, the latest consequences of global warming.
The UN report continues by stating that scientists estimate that global temperatures have now risen by 1.15C since pre-industrial times and said the latest eight years were on track to be the warmest on record. This stark warning opens two weeks of negotiations between countries on climate action.
The report also warned of the other wide-ranging impacts of climate change, including the acceleration of sea level rise, record glacier mass losses and record breaking heatwaves.
Mr Guterres said that in light of these findings, COP27 must be the place for urgent and credible climate action.
Today, the World Leaders' Summit will open with heads of state and government leaders delivering five-minute addresses outlining what they want from the meeting.
Key Areas of Focus and Concern at COP27
- Demonstrate a transformation shift to implementation by putting negotiations into concrete actions.Signatories to the Glasgow Financial Alliance for Net Zero, a group of leading financial institutions committed to decarbonizing the global economy, have said their commitments are contingent on government action to introduce policy changes. The UN climate chief said leaders –be they Presidents, Prime Ministers or CEOs – would be held to account for promises they made last year in Glasgow.
- A focus on themes like biodiversity loss, which is intertwined with climate justice. On Dec. 7, the U.N. will host a biodiversity conference in Montreal. Biodiversity is critical because economic activity depends so heavily on nature. The topic of NbS is gaining traction and will only gain impetus as biodiversity policies take centre stage at COP 27. As corporations worldwide adapt to keep up to date with ESG policies, Nature-based Solutions are at the forefront of projected legislations as they become universally acknowledged as a critical element in the fight against the causes and consequences of climate change. Read more here.
- Climate justice. Cement progress on the critical workstreams – mitigation, adaptation, finance and crucially – loss and damage. Developing countries want an agreement on financial assistance for climate-related loss and damage- money to help them cope with the losses they are already facing from climate change rather than just to prepare for future impacts. Following intense negotiations, the issue is on the official agenda of COP27.
- An emphasis on the water crisis and deforestation, which were among the key themes from last year’s summit. Adaptation and Resilience are of crucial importance to all parties and in particular developing countries. IPCC reports including the latest working group II report highlighted the devastating impacts endured by many countries across the world, and pointed to the fact that we are not on track to deal with current climate impacts nor are we prepared for the extreme weather events that are increasing in number and intensity.
- Enhance the delivery of the principles of transparency and accountability throughout the process.
As well as formal negotiations there will be hundreds of events over the following two weeks with exhibitions, workshops and cultural performances from youth, business groups, indigenous societies, academia, artists and fashion communities from all over the world.
Protests, which are normally a vibrant feature of COP summits, are likely to be subdued.
Egypt's President Abdul Fattah al-Sisi, in power since 2014, has overseen a widespread crackdown on dissent. Rights groups estimate the country has had as many as 60,000 political prisoners, many detained without trial.
Mr Shoukry has said that space would be set aside in Sharm el-Sheikh for protests to take place. However, Egyptian activists have told the BBC that many local groups had been unable to register for the conference.
You can read more and find out all the latest updates on the UN website.
What the Climate Movement Means for Investors
All these considerations create an array of risks and opportunities for investors. “The whole project of decarbonizing is the largest intentional reshaping of the economy,” says Paul Bodnar, BlackRock’s global head of sustainable investing, at a recent conference.
In an interview with Morningstar, Deirdre Cooper, who manages Vanguard Global Environmental Fund VEOIX, notes that the world is currently investing more than $600 billion a year in climate finance. “If we move to a net-zero scenario, that number needs to be $4-$6 trillion.”
Despite the ongoing growth in ESG Investing, there remains numerous challenges when analysing ESG performance for investment funds. We examine four strategies to respond to these challenges and improve ESG information and data.
Managing Your Portfolio's ESG Data
No matter how you collect your ESG data, the ability to compare companies and track improvements over time comes down to one must-have: proper data management and collection.
Intelligent sustainability software like Rio does the heavy lifting. With Rio, you can:
- Manage your ESG risk
- Save time and money by centralising your data
- Increase the visibility of your portfolio
- Conduct ESG due diligence on targets
- Simplify your reporting and meet specific ESG requirements/legislations
Rio also incorporates streamlined workflows, built-in ESG framework requirements, real-time data visualisation, and easy data management.
How can Rio help you? Contact us at rio.ai or schedule a meeting/send us a message.
