Net zero - A practical guide for investors

We show the true scale of the climate challenge facing investors – and outline how they can seek to manage the associated risks, and look to consider the potential opportunities, by aligning their portfolios to a net-zero pathway.

Meeting the goals of the Paris climate agreement will require one of the most dramatic reallocations of capital in the entirety of human history, to rebuild the world’s energy system – virtually from the ground up – over the next three decades.

Energy transitions have historically taken 80-100 years. We believe we need to see a greater scale of change, with a shift of more than 50% in market share between energy sources, for this to occur in fewer than 30 years.

In this paper, we outline how investors can seek to help accomplish this crucial mission and avert a climate catastrophe.