The Copernicus Climate Change Service (C3S) has confirmed 2024 to be the warmest year on record globally, and the first calendar year that the average global temperature exceeded 1.5°C above its pre-industrial level.
Scientists at C3S have been monitoring key climate indicators, and documenting unprecedented daily, monthly and annual temperature records over 2024. Human-induced climate change “remains the primary driver of extreme air and sea surface temperatures”, while other factors, such as the El Niño Southern Oscillation, also contributed to the unusual temperatures observed during the year, researchers concluded.
With average surface temperatures reaching 1.6°C above pre-industrial levels, 2024 marks the first calendar year to exceed the 1.5°C target set by the 2015 Paris Agreement. Although the accord’s benchmarks refer to temperature averages measured over longer periods, experts say this milestone underscores the growing pace of climate change.
According to Hargreaves Lansdown’s latest client survey – the full results of which will be published later this year – individuals are taking note: a majority of investor clients now identify climate change as their primary concern for corporate engagement.
This reflects “a clear shift in investor attitudes”, recognising that extreme events – from fires to floods – can disrupt supply chains, damage assets, and drive up operational costs. In turn, these challenges can undermine portfolio returns, both immediately and over the long haul, said Tara Irwin, senior ESG analyst at Hargreaves Lansdown.
“Beyond the record-breaking statistics published by the Copernicus observation agency, real-world impacts are being acutely felt. Wildfires in Los Angeles continue to devastate communities and infrastructure, revealing the stark financial toll of climate-fuelled disasters. For investors, these events shine a spotlight on the material and often unpredictable risks linked to global warming. Compounding these concerns are signals that some businesses are weakening climate targets and rolling back green initiatives, despite the rising dangers.”
Inaction has consequences, however, asserted UK Sustainable Investment and Finance Association CEO, James Alexander: “The proliferation of extreme weather events such as floods, droughts, wildfires, and storms in the last year is not a matter of debate. The financial system must rapidly transition away from activities that accelerate climate change, and towards those that decarbonise.
“Despite this, every week we encounter investors who have faced policy barriers like planning permission and grid connections which prevent them from investing in otherwise viable renewables projects. The sustainable transition is the economic opportunity of the century, but only if policymakers urgently remove these barriers.”
