Overview
According to the UNFCCC tackling climate change in the next quarter century will require “major changes to patterns of investment and financial flows.” The UN study estimated that US$ 200 to 210 billion of additional investment and financial flows would be necessary to return greenhouse gas emissions to current levels (Copenhagen Climate Council).
Finance has an essential role to play in making the transformational shift to a One Planet Future. Finance can play a positive role in the environment however, conversely, if not directed in a way that supports sustainability it can often have a negative impact. For example, many people who hold pension funds in the UK do not realise that their pensions are invested in large companies on the stock market such as BP and Shell. This translates to billions of pounds of the UK’s public’s money being invested in companies that are exacerbating climate change.