Ahead of the vital COP26 climate change conference in Glasgow from 31st October 2021, a new survey has confirmed the investment community’s willingness to support the drive to net zero.
With Australia’s prime minister now confirming his attendance at COP26 after ending weeks of speculation about whether he would make the trip, Ninety One, an independent, active global investment manager, has published the second edition of the Planetary Pulse survey, Investing for a Carbon Free World: What Investors Want.
Significantly, the survey revealed that thirty two percent of investors are happy for their money to be used to reduce carbon emissions, regardless of return.
The survey of more than 6000 individual investors across ten markets (UK, Germany, Italy, Denmark, Sweden, South Africa, Singapore, Hong Kong, US, and Canada) found that investors are ready to support the drive to net zero, with half stating that asset managers should use their influence as shareholders of carbon-heavy companies to help facilitate the reduction in carbon emissions.
Ninety One said this suggests that investors are ready to use their wealth to invest in sustainable solutions which assist in the drive to reach net zero.
In their findings, the company found that despite a clear knowledge gap, the concept of investing to achieve net-zero has positive appeal for 4 out of 5 investors. However, many investors remain sceptical about their ability to contribute to efforts to tackle climate change, with 61% stating that they feel the worst polluter should be tackling the issues.
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Hendrik du Toit, Founder and CEO, Ninety One said: “We believe in sustainability with substance. However, there is an incontrovertible and sobering fact about the drive to net zero – any effort that does not work for the world’s 7.9 billion people, will fail everywhere. To really save the planet, we must help emerging markets go green. That means robust carbon markets, debt-for-climate deals, and financing options to speed the transition. As a company with its roots firmly in South Africa, we understand this need perhaps better than most. Emerging economies, after all, are not responsible for the bulk of emissions to date.”
Deirdre Cooper, Ninety One’s Co-Portfolio Manager, Global Environment Fund, said: “The climate crisis presents both tremendous opportunities and risks to investors. This survey makes clear that investors across the globe are looking to allocate capital to funds which invest in companies and countries that are working towards a sustainable future.”
Australia’s prime minister Scott Morrison is currently negotiating with his party’s coalition partner about policy commitments for Australia to adopt a net zero emissions commitment by 2050. These commitments would enable Morrison to attend COP26 with a clear framework to take to the summit.
