COP26: Can we trust investment industry climate pledges?

COP26 has meant new pledges and signatories

This week asset managers have scrambled to sign and declare their support for various pledges that demonstrate their ambition to fight climate change. In particular there has been the deforestation pledge and the additional signatories to the Net Zero Asset Managers initiative (NZAMI).

However, what is the purpose of the pledges and what does it mean when a firm does not sign up? "We've seen a raft of commitments to net zero targets announced at COP26. It's important to remember that these commitments are the first step towards realising the systemic change we need to secure our planet's future. Commitments are a sign of institutional intent, which have to translate to action," said Eniko Horvath, head of climate at the Principles for Responsible Investment. "They are valuable signalling mechanism," agreed Graham Stock, emerging market senior sovereign strategist at...