Why the COP26 climate summit is crucial for investors

How can investors make a difference in the run-up to COP26?

A key way for investors to get involved is to make your money count through the Glasgow Financial Alliance for Net Zero (GFANZ), of which St. James’s Place is a member. The alliance brings together more than 160 financial firms – together responsible for more than $70 trillion in assets – to accelerate the transition to net-zero emissions by 2050 at the latest.

GFANZ members have signed up to strict criteria. They must be accredited by the UN Race to Zero campaign, which rallies leadership and support from businesses, cities, regions and investors for a healthy, resilient, zero-carbon recovery. GFANZ members must also use science-based guidelines to reach net-zero emissions, set interim targets for 2030, and commit to transparent reporting and accounting.

St. James’s Place is also part of the Net Zero Asset Owners Alliance (NZAOA), whose members commit to aligning their investment portfolios with net-zero emissions by 2050 or sooner.

You can help drive change

Research shows 58% of people are unaware that they can invest their money in a way that contributes to tackling environmental challenges². But Amelia James, Head of Environmental Strategy at St. James’s Place, says they can make a decisive difference, and the Glasgow conference and financial alliance are a fantastic opportunity to highlight that and make it happen.

“St. James’s Place takes climate change seriously, which is why we’ve signed up to these alliances,” she says.

She highlights that St. James’s Place operations are carbon neutral already. For the companies it invests in, the firm is also targeting a 25% reduction in emissions by 2025 and net zero by 2050.

“Targets are important, so we are also working on net-zero commitments for the wider group, including our Partnership and Suppliers,” adds James.

St. James’s Place has £140 billion in funds under management, invested with 40 fund managers around the world. Those managers are responsible for £6 trillion in assets.

By investing with St. James’s Place, you will help make a much larger impact by mandating these managers to engage with companies on improving environmental, social and governance outcomes.

Furthermore, the Net Zero Asset Owners Alliance manages assets of more than $29 trillion globally – which means your money becomes part of an even larger and more powerful movement against global warming.

James says we can all make simple life choices, such as using green energy and public transport, to help tackle climate change. But research shows that the most impactful thing anyone can do is allocate their savings – including their pensions – to investments that help drive positive change in companies.

Doing that can be 27 times more effective than flying less, eating less meat, taking shorter showers and using trains instead of cars combined³. This is how to make your money a force for good.

Our world is changing faster than anyone predicted. We believe responsible investing has a huge role to play in shaping a better world and building a sustainable future.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

¹ UK targets 78% cut in GHG emissions by 2035, to include aviation, shipping, S&P Global Platts, April 2021
² Responsible Investment 2020, St. James’s Place and The Wisdom Council, January 2021 (Based on a survey sample size of 2,067)
³ Use your savings to lower your carbon footprint, Nordea, June 2018