COP26 – ESG Feature


aggregate negotiated position of the world’s governments, often resulting in softer outcomes,” he adds. For Catherine Ogden, a sustainability and responsible invest- ment manager at LGIM, institutional investors and their man- agers did not feel a huge impact from the agreements made at COP on the day the conference closed, yet their influence will be felt for years to come. “We will be held accountable by our clients and our clients will be held accountable by the regula- tor,” she adds. “There will be a trickledown effect.” However, McAllister highlights one immediate benefit. “Prior


to the UK hosting COP, 30% of global emissions had net-zero targets; it is now 80%,” he adds. “The ambition has been raised, which is step one in achieving the 1.5-degrees target. Now comes the hard part of fast delivery.”


This fast delivery will be difficult, and if it is achieved, it will probably be led by the financial sector. “Technology and invest- ment are likely to play a stronger role than government inter- vention,” McAllister says. “It is a difficult situation for politi- cians to solve, because it involves the raising of food and transport costs, which is politically unattractive.”


Issue 110 | February 2022 | portfolio institutional | 29


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