INVESTMENTS

Download our net zero guide Here are 10 key questions to help :

Gillian Hepburn Head of UK Intermediary Solutions Schroders

1 . What is net zero ? Perhaps we need to take a step back . The world is getting warmer as a result of human activity , and as extreme weather events are becoming more frequent , the implications of this are becoming more apparent . We can ’ t stop global warming overnight but our best chance of preventing devastating climate change is to limit future global warming to 1.5 degrees Celsius above pre-industrial levels . To achieve this , we need to reduce the amount of greenhouse gases we emit into the atmosphere so that they no longer exceed what can be absorbed . This balance between greenhouse gas emissions and absorption is ‘ net zero ’.

3 . Where are governments on this ? Many governments have now committed to a net zero emissions target and those representing over 80 % of global GDP have now committed to lowering emissions .

4 . What role can investors play ? From an investment perspective , any major change in the economic and market background represents both risks and opportunities when considering client investments .

5 . What is the target for reaching net zero ? The UK Government has committed to a 68 % reduction in carbon emissions by 2030 and net zero by 2050 .

6 . How will this be achieved ? The target is an ambitious and expensive commitment which the government cannot afford alone . To achieve this they will also have to mobilise and direct private capital directly .

2 . How will this be achieved ? It ’ s a massive undertaking and requires the involvement and co-operation of governments , businesses and individuals on a global scale . Whilst government policy will be the main driver , we all have an active role to play as asset managers and advisers .

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