Your top five 'need to knows' from week one at COP26
- ISSB Launch
With the announcement of the IFRS Foundation’s new International Sustainability Standards Board (ISSB), which will also merge the Value Reporting Foundation (VRF) and the Climate Disclosure Standards Board (CDSB), we are now at an exciting moment where our vision for an integrated approach to reporting is – at long last – a big step towards becoming reality.
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- GFANZ announce $130 trillion for net zero
450 firms have collectively committed $130 trillion of private capital to transition to a net zero emissions economy. The commitment has come through the Glasgow Financial Alliance for Net Zero (GFANZ), spearheaded by Mark Carney. There is still work to do to ensure proper transition pathways are in place and to avoid 'greenwashing', but this is a significant step in the right direction.
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- Mandatory transition plans for UK companies and financial institutions
UK Government will require all UK financial firms to publish net zero transition plans, with the aim to become the world’s first Net Zero-aligned Financial Centre. This will ask asset managers, regulated asset owners and listed companies to publish transition plans or provide an explanation if they have not done so.
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- Methane and coal pledges
The US and the EU have announced a global partnership to cut emissions of methane by 2030. The pledge is missing Russia, China and India. However, scientists believe it could help the world avoid 0.3°C of warming by 2040, and when every increment counts, this could deliver real impact. Similarly, 40 countries have agreed to phase out their use of coal-fired power, again missing out on some major coal-dependent nations, but the commitment is said to “keep 1.5C alive”.
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- $19.2 billion pledged to end deforestation
COP26's first major deal was signed by over 100 world leaders, who promise to end deforestation by 2030. The countries that have signed the pledge cover around 85% of the world's forests. As with other headline pledges made, turning commitment to action will be critical, with business and finance both having a role to play in the response.
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