The readjustment in the approach to climate and the global development goals in Agenda 2030 open the field to create new economic and financial values as it is ”The biggest business opportunity in history for investing in the global goals”. If we do not change course we risk losing the value of our assets if the planet warms more than four degrees, which is what the present trend is expected to lead to. Yet another reason for investors to care about Agenda 2030 is that the role of the financial sector is completely decisive because significant investments are needed to reach the targets.
There is money in the system but more needs to be redirected. Companies will have to change their business models to become resource efficient and climate smart. Some companies disappear and others are added when the map is redrawn. This has always been the case, but now we must accelerate the process if we are to have a habitable planet in the future. And thanks to major technological advances, especially in renewable energy, we have an open window for a few more years to take the big steps that are needed towards a liveable future.
In Sweden, the most energy-intensive companies have got together and devised roadmaps within the government’s Fossil-free Sweden10 initiative. Sweden’s climate target is to have no net emissions of carbon dioxide by 2045 – our industry can achieve this if they get the right tools. These tools can be government support for technological development or various policy instruments and amended regulations. They can also be customer requirements and collaboration across the entire value chain in a sector. By taking the lead, Swedish companies will also get a competitive advantage, as this is about global development. It gives great hope for both Sweden and the world.
As investors we have a key role to play in supporting these necessary changes, for example by pushing to develop new investment products for the various roadmaps for readjustment for climate change.