Gustavo Bernal Torres
Key Challenges for the Next Phase of Net Zero Investing
Generation Investment Management recently launched its 4th Insights piece, in which they set out their thinking on the critical next steps for net zero investing-
Maintaining the integrity of net zero commitments is crucial for the climate – and for the business case for net zero investing. As investors move onto a net zero path, they will need to consider seven key challenges: Integration with the investment process, value chain, offsets and carbon removals, systems in transition, disruptive change, hidden risks, and evolving science.
Tracking to net zero impacts investment both through capital allocation choices and engagement. Building the right processes to do this over time in line with credible interim net zero goals is key. Engagement resourcing, breadth and forcefulness must match the scale of the task. Reporting on progress over time with transparency of methodologies and assumptions is crucial to build confidence and momentum.