Tackling climate change
A global challenge
We are all affected by the climate crisis. Whether that’s living in buildings that can’t cope with extreme heat, reduced availability of the food we love, or higher insurance premiums in areas prone to flooding. Often the hardest hit are the most vulnerable communities, who have no buffer to cope with damaged homes or livelihoods wiped out by drought, fire and flood. Almost half of the world’s population are living in areas that are highly susceptible to climate change.
We all have a role to play in making informed decisions that reduce our impact on the planet. And major companies and governments across the world must take bold action to stop the crisis from worsening.
At ShareAction, we know that investment decisions today shape the world of tomorrow. Currently many investment decisions are short term, focusing on maximising profit and failing to account for how they will affect our planet and its people. When responsible investment is the norm, it can enable a fair and inclusive transition away from dirty fuels that supports workers and communities to ensure no one is left behind and reduces the harm inflicted on the planet.
With improved regulation, responsible investment will provide the boundaries companies must work within, with clear targets that companies can no longer push back on or get away with missing altogether.
Role of the financial system
Just 57 companies are linked to 80 per cent of global emissions. Along with their investors, they could hold the key to tackling climate change.
Institutional investors, including pension funds, insurance companies and asset managers, currently hold $4.3 trillion in bonds and shares of fossil fuel companies.
Since the Paris Agreement was signed in 2015, the world’s 65 largest banks have financed fossil fuels to the tune of nearly US$8 trillion.
Damages from climate change including severe weather events could cost the global economy an estimated $38 trillion a year by 2049
Our work
Fossil fuels
Emissions from fossil fuels are the dominant cause of global heating and fossil fuel companies remain huge polluters with huge financial backing. We work to assess the fossil fuel policies of the biggest investors, banks and insurers, and to challenge them to go further in excluding the dirtiest energy fuels from their investment portfolios. Our work on raising banking standards has had huge impact over the years and now is the time to ensure banks don't back track.
Find out moreHeavy industry
Industrial activities are a major source of carbon emissions, along with other potent greenhouse gases such as nitrous oxide, methane, and fluorinated gases. Heavy industry is thought to be responsible for 22 per cent of global emissions – and decarbonisation of these sectors is complex. The chemical sector is the largest industrial consumer of both oil and gas. We work with investors of the chemicals sector to break down the technical barriers to action, and present credible decarbonisation pathways they can use to pressure companies.
Find out moreBuilt environment
The built environment is a driver of the climate crisis hiding in plain sight. Emissions ‘embodied’ in buildings when they are built, and released to heat and power them, are estimated to account for a third of global GHG emissions. Tackling both ‘embodied’ and ‘operational’ emissions will therefore be critical to meet the Paris goal of limiting global warming to 1.5C. We work with investors to steward real economy actors towards the decarbonisation of the built environment.
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