Climate change is a systemic threat to the global economy and represents both a strategic and operational challenge for all companies. As awareness of the systemic impact of climate change has grown, there has been progress on many fronts.
Countries have committed to reducing carbon emissions in line with the 2015 Paris Agreement of limiting global warming to well under 2°C by the end of the 21st century. In addition, many countries and local jurisdictions, led by the European Union, are implementing carbon pricing and emissions trading initiatives in order to reach net zero carbon emissions by 2050.
We have seen a sustained shift in energy use, away from fossil fuels and towards renewable energy, driven by acknowledgement of the impact of fossil fuel pollution, the need to reduce carbon emissions, and the growing affordability and practicality of renewables.