All organisations need to “push the system” to accelerate the global transition to net zero, while removing friction in creating the right incentives, according to the latest report authored by Accounting For Sustainability (A4S) in partnership with Aviva Investors.
The report – Accelerating the Transition: Assessing Progress and Driving Action – describes economy-wide practical actions to accelerate the global transition. It outlines the current state of sustainability efforts, identifies barriers to progress and proposes practical action for businesses, investors, regulators and governments.
Informed by insights from global leaders in business, finance, regulation, academia and the public sector, the report calls for immediate, coordinated and ambitious actions across the economy to:
- Drive a significant increase in ambition and set robust interim 2030 targets.
- Close the implementation gap through economy-wide, systematic use of transition plans.
- Remove friction across the international financial system by enabling regulatory and legal frameworks to incentivise and de-risk climate financial flows.
- Back the ‘big bets’ with an industry-wide collaboration on systems-level sustainability solutions.
Launched as the organisation celebrates its 20th anniversary, Jessica Fries, A4S’s executive chair, said: “While we have achieved a lot in this time, and with real progress being made across the global economy, there is a limited window of time remaining if we are to keep global warming within safe limits.
“We all have a role to play, working together to increase the allocation of finance to sustainable outcomes and adopt solutions at scale. As our work highlights, this can deliver significant growth opportunities for business and the economy and is essential to reduce the significant risks faced by dangerous climate change. This report sets out practical actions for organizations – no matter where they are in the economy – to leverage their influence, drive impactful change and expedite the transition to a sustainable economy.”
Further comment
Speaking at the launch Steve Waygood, chief sustainable finance officer, Aviva Investors, said: “As an active asset manager, stewardship is an incredibly powerful tool to guide our portfolios through the energy transition. It generates an information advantage, helping us and the companies we invest in seize upon opportunities and maximise financial performance.
“Working in partnership, investors, companies, and governments can identify more sustainable investment opportunities and shape a supportive policy environment. Taking a systemic approach is critical for all investors looking to maximise long-term risk-adjusted returns within a more sustainable economic growth pathway.”
Nigel Topping, a member of the UK Climate Change Committee and a member of the advisory group for the report, added: “This report demonstrates the importance of moving beyond a focus on disclosure and engagement as tools of change. It sets out a systemic approach to driving the levels of capital needed to tackle the twin crises of climate change and biodiversity loss, in particular ensuring that capital flows to emerging markets and new asset classes such as nature-based solutions and regenerative agriculture. Governments and capital providers alike must develop transition plans to drive the systemic changes needed.”
