Homing in on Quality in Climate Investing Strategies
Concerns and action to stem global warming are decades in the making, although efforts have increased in recent years. The German city of Freiburg, for instance, pioneered the move to solar power in the 1980s and is quickly approaching its goal to nearly halve its greenhouse gas emissions by 2030. Freiburg’s early awareness is uncommon, however, and many economies and industries today are just waking up to climate-related risks.
Climate Risks Are High but There’s Still Time to Act
Europe experienced its second-hottest year on record in 2022; globally it was the fifth warmest. Against this backdrop, the UN’s environmental experts intensified demands to fast-track climate-fighting efforts by “every country and every sector on every timeframe.”
On a positive note, the same UN report underscored that it’s not too late. First, the widely adopted goal to limit annual rising temperatures to 1.5 degrees Celsius by 2030 is still within reach. And by mobilizing funds and sharing best practices, technology, and effective policy measures, any entity can better manage, even prevent, carbon output.