Will Goodhart: Investment management is facing a critical decade

IPCC report eye-opening

'Global warming of 1.5°C and 2°C will be exceeded during the 21st century unless deep reductions in carbon dioxide (CO2) and other greenhouse gas emissions occur in the coming decades… From a physical science perspective, limiting human-induced global warming to a specific level requires limiting cumulative CO2 emissions, reaching at least net-zero CO2 emissions, along with strong reductions in other greenhouse gas emissions.'

The above, from August's IPCC report, did not make for good bedtime reading. Many of us knew most of this already, but for those that have not been paying attention to this year's devastating German floods, North American fires and Madagascan drought-induced famine, it must have helped the penny drop. Climate change is impacting everything and its influence on the investment sector is now - like climate change - undeniable. Government policy and social change are driving clients to demand we integrate climate and broader sustainability considerations into investment processes and prac...