9th August 2021 – Fiona Reynolds, CEO at the Principles for Responsible Investment, comments: “The IPCC report released today is a justified “red alert” on the future of our planet. The facts are clear: human-induced climate change is indisputable, it affects every region on our planet, and strong, rapid reductions in greenhouse gas emissions are needed to curb warming rates. Without decisive action to reduce emissions and change course, global temperatures could rise between 3-4°C or more by the end of the century, meaning that humanity faces the stark possibility of irreparable damage being done to our planet and our way of life.

“The financial services sector has a vital role to play in overcoming these challenges. The transition to a net-zero economy cannot be achieved without strong government leadership and robust action from the asset owners and managers alike. We encourage investors to review their commitments to tackling climate change and to take action, by setting a net zero target and supporting initiatives such as Race to Net Zero and the UN-convened Net Zero Asset Owner Alliance.

“The report is unequivocal in its findings – it should serve as a massive wake-up call that we are not going to manage the climate crisis without decisive action. In response, governments and regulators need to provide near-term accountability for net-zero targets with robust policy frameworks and credible emission reduction plans for 2030. Getting on track with a 1.5°C pathway remains feasible and represents our best chance to sustain economic growth, protect the vulnerable and manage the energy transition.”