To limit global warming, the world must transition to a low-carbon economy. And that will take money – lots of it. Over the next 15 years …
Klier: “We know we need about 100 trillion of investments to make the transition happen.”
Daniel Klier is Global Head of Sustainable Finance at the International Bank HSBC. He says most investors want to allocate more to sustainability, but many are unsure where to put their money.
He says it can be hard to determine if a company is truly reducing its carbon pollution. And differing definitions of sustainability make it tough to compare investment opportunities.
Klier: “And so it’s very hard to create a market that is really global and liquid and allows investors to allocate resources in the right direction.”
To help, an international group called the Financial Stability Board created a Taskforce on Climate-Related Financial Disclosures.
Klier: “It was seen as the way to create transparency across global companies and pick out who is sustainable and who isn’t.”
A survey shows only ten percent of investors know the taskforce exists. But if awareness grows, it could help boost the green economy … because the money – and the willingness to invest it – are there.
Reporting credit: ChavoBart Digital Media.