As Joe Biden begins to shape his presidential transition in the United States, it is clear action on climate change is a campaign priority that will drive forward his new administration. A net-zero commitment from America would bring 63 per cent of the world’s emissions under such a pledge, following bold announcements from the European Union, Japan, South Korea and, importantly, China, that have all joined the UK’s pledge this year.
Such commitments signal increasing momentum towards a sustainable future. The UK, as host of United Nations COP26 climate change conference and president of the G7 next year, must demonstrate bold leadership, particularly in one of the UK’s most important industries: financial services.
In a policy victory for the UK Sustainable Investment and Finance Association (UKSIF), chancellor Rishi Sunak has announced world-leading UK regulations requiring climate risk reporting across the economy. Investors will soon have access to a large volume of data on the impacts different climate change scenarios could have on their investments. However, more work is needed and the UK must remain closely aligned with other major regulatory developments, particularly from the EU.