ARTICLE – To achieve net-zero emissions, environmentally-vulnerable countries must invest trillions of dollars in capacity-building and green infrastructure. To enable investments on this scale requires mandatory global frameworks for sustainable investment.
PARIS/WASHINGTON, DC – Next week’s United Nations Climate Change Conference (COP27) in Egypt will be the first such summit held on African soil since 2016. That makes the gathering an ideal setting for world leaders to deliver on their earlier promises and announce a comprehensive plan to mitigate the worst effects of climate change on countries in the Global South.
Providing developing countries with the financing they need to achieve net-zero emissions is crucial to realizing climate justice. Ensuring inclusive and sustainable growth will require investing trillions of dollars in clean energy and green infrastructure. But only through investment on this scale can we meet the 2015 Paris climate agreement’s central goal of limiting global warming to well below 2° Celsius, relative to pre-industrial levels.
Fortunately, since the Paris agreement was signed, institutional investors have become increasingly aware that climate change could significantly affect companies’ bottom lines and have incorporated ESG (environmental, social, and governance) and sustainability factors into their risk analyses and valuations.
But as important and commendable as these measures are, they are not enough. Developing global standards for climate-risk disclosure marks the next stage in the fight against climate change. To this end, we must merge today’s alphabet soup of differing ESG and sustainability guidelines into a single mandatory framework. The International Sustainability Standards Board (ISSB) and the European Union’s proposed Sustainability Reporting Standards (ESRS), which aim to create clear rules and criteria for ESG-related disclosures, are both steps in the right direction.
Find the entire article written by Bertrand Badré and Jingdong Hua on Project Syndicate.