Janus Henderson’s Decarbonisation Panel at COP26 Inspires New Emerging Market Report
November 10 2021 - 5:00AM
Business Wire
Janus Henderson has today announced it will launch a new series
of reports investigating decarbonisation and the part governments,
corporates, capital markets, and asset managers need to play to
facilitate further decarbonisation across the world.
At the World Climate Summit in Glasgow on Monday, Janus
Henderson convened a panel to discuss whether decarbonisation could
be an opportunity for emerging markets, rather than a challenge to
mitigate.
Paul LaCoursiere Global Head of ESG Investments at Janus
Henderson who moderated Monday’s panel said: “Our panel
was the jumping off point. There are success stories like Chile
where markets are already in the midst of their own decarbonisation
journey. Our reports will set out the role that needs to be played
by governments, corporates, capital markets, and asset managers to
facilitate further decarbonisation. The asset management industry
is hungry to play its part in resolving the existential risk of
climate change, but it cannot solve this problem alone. Our new
series of reports will outline the role we all need to play in
helping emerging markets decarbonise.”
For the purposes of the report, emerging markets will be divided
into four regions: Eastern Europe; Africa and the Middle East;
Latin America and Asia. The first of the four regional reports will
be published in the first quarter of 2022.
The panel culminated with some bold conclusions:
Dr Nina Seega, Research Director at the Cambridge Institute
of Sustainable Leadership (CISL): “Financial markets
participants and climate scientists must recognise the gap that
exists between their thinking about the carbon transition. As an
economic community, we tend to think the future will be linear and
will broadly follow the pattern of the past. Climate scientists
think in terms of disruptive transition. While financial analysts
may worry about the effect that the slow but steady carbon
transition will have on the net present value of legacy assets, a
climate scientist would ask: what happens to the value of an asset
under a quick and potentially painful disruptive transition from
climate change? Overall, this was an encouraging COP but now I want
to see more ambitious Nationally Determined Contributions from
governments.”
Mark Cutifani, Chief Executive Officer at Anglo American Plc,
said: “COP26 has firmly shifted the conversation from the
“Why?” to “How?” around decarbonisation. We all understand that we
have a collective role to play in addressing climate change and now
the focus is on how we must work in partnership with multiple
stakeholders – such as governments, regulators, local communities –
to define the actions we need to take. We currently have several
requests from asset owners to help finance our various green
projects and our CFO is looking at these various financing
options.”
Krista Tukiainen, Head of Research at Climate Bonds
Initiative, said: “The fixed income space already has
relatively good definitions and governance mechanisms to ensure
projects can be financed, but market and policy-based mechanisms
can work better in tandem to deliver impact in emerging markets. My
reflection on this COP is that the introduction of a global
baseline taxonomy is perhaps the single most crucial element in
enabling financial institutions to make a tangible impact in
addressing climate change and other sustainability priorities
sooner rather than later. Taxonomies can help identify eligible
projects even at the smallest levels and, if we can harmonise
taxonomies in a scattered marketplace, this will ensure capital
flows where it needs to.”
Francisco López, Chile’s Vice Minister of Energy:
“Chile’s goal of achieving Carbon Neutrality by 2050 is a
challenge, given the need to decouple our economic growth from
energy consumption and reduce our dependence on imported fossil
fuels. 77% of Chile’s Green House Gas emissions are linked to the
energy sector. However, this is the same sector that will help us
tackle climate change and bring both social and economic
opportunities to the country. The energy sector is leading Chile’s
decarbonization plan and commitment to reach carbon neutrality by
2050 through investing in renewable energy, developing a green
hydrogen industry, withdrawing from coal-fired power plants by
2040, replacing fossil fuels with electricity in the transport
sector and aiming to have 100% electric light and medium vehicle
sales by 2035, amongst other things.”
To view the full recording of the panel, please contact Stephen
Sobey, Head of Media Relations.
Notes to editors
Janus Henderson Group (JHG) is a leading global active asset
manager dedicated to helping investors achieve long-term financial
goals through a broad range of investment solutions, including
equities, fixed income, quantitative equities, multi-asset and
alternative asset class strategies.
At 30 September 2021, Janus Henderson had approximately US$419
billion in assets under management, more than 2,000 employees, and
offices in 25 cities worldwide. Headquartered in London, the
company is listed on the New York Stock Exchange (NYSE) and the
Australian Securities Exchange (ASX).
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