Some good news seems to have emerged, with historic commitments to tackle global deforestation and methane abuse. The Glasgow Breakthrough Agenda was also signed by 35 world leaders - representing 50% of the global economy - to develop new, clean technologies and drive down costs.
However, China’s President Xi Jinping, for instance, did not attend and it was reported that he called for a less ambitious target of limiting the global warming increase to 2C (rather than 1.5C, adopted in 2015 under the Paris Agreement).
Disappointment has also been expressed over India’s goal to reach “net zero” by 2070; much later than many would like.
But all of this attention on climate change has led many clients to ask: “What can I do?”
So what can they do?
On a basic level, there are lifestyle habits that may need examining, and how they spend and invest is a key factor when it comes to the financial planning conversation.
Litter picking, recycling and regulating fossil fuel-powered travel are all well-known, accessible, immediate ways to reduce carbon footprint, which they may already have been embarked upon.
Companies such as car manufacturers are more likely to focus on producing 'greener' products if demand pulls profits in that direction – just look at the explosion in sales of electric vehicles, for example. This is driven by customer behaviour.
All this is already part and parcel of most consumers' thinking. But what about financial services?
On a basic level, financial services companies know they need to be on the right side of history. Banks and investment firms, for example, are more likely to avoid involvement with, say, land abuse if the financial and legal risks become too great.
Here, the Cop26 event made significant strides, particularly on deforestation. In 2014, most countries pledged to end the irreversible destruction of woodland by 2030 during the New York Declaration on Forests.
While well-meaning, this pledge had no implementation mechanism and high finance had not been brought aboard to incentivise the pursuit towards this goal.
This time, however, the sector is closely involved. Thirty financial institutions responsible for $8.7trn - including Fidelity, Axa and Legal & General - have committed to move into sustainable farming, rather than 'tree slashing' for commodities such as palm oil.
Much of this behaviour change can be attributed to governments strengthening environmental rules, yet consumer demand is also making a key contribution.
Checking credentials
For clients, it has become increasingly important to check the ESG credentials of a fund, or company, prior to investing in it. And they are looking to us for guidance and reassurance.
