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An investor’s guide to climate change: the simple and surprising facts

4 months ago

By Anastasia Petraki, Head of Policy Research at Schroders

Climate change is real, it is being driven by record and still-rising greenhouse gas emissions and human activity is mostly responsible for it. 

Every year, more and more people around the world feel its effects through recurring extreme weather events that harm life and property and dislocate populations.

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The impact of global warming is becoming uncomfortably tangible.

Anastasia Petraki, Head of Policy Research at Schroders

The good news is that we are concerned enough for Greta Thunberg to be immediately recognisable around the world. The bad news is that we are not scared enough. Despite all the policy action in the last decades, greenhouse gas emissions are still increasing and the planet is still warming.

Perhaps the key lies in climate change literacy. Most of us have heard about global warming and its effects but how much do we really know about how human activity is harming the environment? For example, did you know that:

  • Despite the drop in greenhouse gas emissions due to Covid-induced lockdowns worldwide in 2020, the concentration of greenhouse gases now stands at record levels (Source: World Meteorological Organisation)
  • We are on course for a 3.6 degrees Celsius increase instead of the 1.5 degrees envisaged by the Paris Agreement (Source: Schroders Climate Progress Dashboard)
  • Our use of cars has almost five times the carbon footprint of flying (Source: Our World in Data)
  • If all the plastic we have discarded in the world were cling film, we would be able to wrap the whole planet one and a half times in it (Source: Mike Berners-Lee, How bad are bananas?, 2020)
  • Chocolate has almost the same carbon footprint as beef (for dairy) the main culprit being the land use impact of growing cocoa (Source: Schroders)
  • The fashion industry accounts for 10% of annual global emissions and is a major driver of deforestation and soil degradation (Source: European Parliament Think Tank)
  • Our use of phones, computers, tablets, TVs, networks and even cryptocurrencies accounts for 2.5% of global emissions (Source: Mike Berners-Lee, How bad are bananas?, 2020)

 

The report below puts together some facts about climate change that can help all of us better understand climate change and the role that human activities play. It also makes some suggestions about actions that we can take as individuals to manage our carbon footprint and explains what Schroders is doing as an investor and a company.

Reading this may get scary at times but please do not look away!

Read the report here:


 

Important information:

Marketing material for professional clients only. Investment involves risk. Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise. Schroders has expressed its own views and opinions in this document and these may change. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Insofar as liability under relevant laws cannot be excluded, no Schroders entity accepts any liability for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise). This article may contain ‘forward-looking’ information, such as forecasts or projections. Please note that any such information is not a guarantee of any future performance and there is no assurance that any forecast or projection will be realised. 

This material has not been reviewed by any regulator.

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