Challenges in a changing world: financial discipline and systemic risk

In the first instalment of a new series, we explain how our expectations of companies are evolving as key climate milestones approach.

Humankind continues to pump greenhouse gases into the atmosphere and our world continues to warm.

The Paris objective of keeping the average rise in temperature to 1.5˚C by 2100 is still viable, but the number of routes to achieving it is reducing. The key net zero date of 2050 remains, but we are getting closer to it.

At the same time, the pace of transition in some sectors has accelerated beyond expectations.1 The economy is transforming, requiring increased agility from companies and investors.

This series examines the implications for our investment stewardship expectations.