BAKU, Azerbaijan, May 25. The gap between decarbonization commitments and the effective world trajectory will create growing tensions on markets, Trend reports with reference to the US JP Morgan Bank.
“For asset managers, we believe that the pressure to be aligned with the Paris Agreement will to grow as the global economy appears increasingly clearly to be on an unsustainable path. If regulatory evolutions are insufficient to effectively decarbonize the global economy, we expect growing stakeholder pressures on the financial sector not to finance an unsustainable world. This trend is already visible with the multiplication of NGO public actions targeting the financial sector, and can be expected to gain traction,” the Bank said in its report.
Following the launch of the Glasgow Financial Alliance for Net Zero in April 2021 by UN Special Envoy for Climate Action and Finance Mark Carney and the COP26 Presidency, multiple net-zero financial sector-specific alliances from across the globe have been integrated under one industry-wide strategic alliance.
The alliance includes Net-Zero Asset Managers initiative, Net-Zero Banking Alliance, Net-Zero Asset Owner Alliance, Paris Aligned Investment Initiative, Net-Zero Insurance Alliance, Net Zero Financial Service Providers Alliance and the Net Zero Investment Consultants Initiative, covering a diversity of stakeholders among the financial industry. Members currently include more than 450 member firms, representing more than $130 trillion in assets under management and advice.
JP Morgan notes that asset managers’ climate commitments are likely to impact their investment universe and asset valuations increasingly.
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