In November 2021, global governments gathered in Glasgow for the COP26 climate change conference to further global policy ambition on climate. Isio has explored what the outcome document, the Glasgow Pact, means for investors.

While good progress was made in Glasgow, COP26 hasn’t gone far enough to deliver the Paris Agreement, with global climate plans now equating to a 2.4⁰C scenario this century, given insufficient planned decarbonisation in this decade. The Paris Agreement objective aims for a well below 2⁰C scenario, with ambition towards 1.5⁰C. Nations have been called upon to increase their ambitions by the end of 2022, with a particular focus on nearer-term targets to 2030.

The Glasgow Pact generates a number of implications for investors, including the renewed call to mobilise climate-related financing, and understanding key focus areas, such as the global goal on adaptation, the role of nature-based solutions and biodiversity, and engaging with the social agenda under the climate change banner.

Date of publication: November 2021

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