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Three reasons why we need to look beyond decarbonisation

Eva Cairns
Eva Cairns • 5 min read
Three reasons why we need to look beyond decarbonisation
Photo by Matthias Heyde on Unsplash
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Climate change has been a core sustainability investment theme for a few years. According to Morningstar, some US$415 billion ($550 billion) of assets were held in climate funds as of the end of 2022, up from around US$220 billion only two years earlier.

We have also seen a major increase in carbon net-zero commitments. According to Net Zero Tracker, 92% of global economic activity linked to 88% of global emissions is now covered by a net-zero goal.

More than half of 2,000 of the world’s largest companies have a net-zero goal, representing 66% of their total annual revenues. Moreover, corporate net-zero commitments grew by more than 40% in only 16 months — from 702 in June 2022 to 1,016 in November 2023.

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