Decarbonisation will be a powerful multi-year growth driver for select companies, as well as an existential threat for carbon-dependent businesses.
31 Jul 2020
10 minutes
What you should know
2019 capped the hottest decade in recorded history. Every decade since the 1960s has been warmer than the previous one.1
Air pollution kills 7 million people annually and costs societies more than US$5 trillion a year.2
The world’s 215 biggest companies, representing nearly US$17 trillion in market capitalisation, value the climate risks to their businesses at a collective ~US$1 trillion.3
What is decarbonisation and why it matters?
Decarbonisation is the process of reducing carbon emissions to avoid the impacts of
climate change.
The world needs to spend US$2.4tn every year to 20354 to limit temperature rises to 1.5˚C.
Just half a degree above that will significantly worsen the risks of drought, floods, extreme
heat and poverty for hundreds of millions of people.
Why decarbonisation is now a mainstream investment priority
Decarbonisation will be a powerful multi-year growth driver for select companies, as well as an
existential threat for carbon-dependent businesses.
1. Source: Research findings from NASA and the National Oceanic and Atmospheric Administration released in January 2020.
2. Source: United Nations press release, 31 May 2019.
3. Source: CDP report, June 2019.
4. Source: United Nations Intergovernmental Panel on Climate Change.
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