With an illustrious career spanning roles as Governor of both the Bank of England and the Bank of Canada, Mark Carney has long been an advocate for sustainability, particularly in addressing climate risks. In this episode, Mark talks about the politicisation of Net Zero, investment opportunities in decarbonisation, and why transitioning from “brown to olive” and eventually to “green” can unlock immense value, both for the planet and portfolios.
Don’t be Afraid to Focus Investments Where Emissions Are High:
While investing in green companies is essential, targeting high-emission sectors like energy, transport, and heavy industry offers a unique opportunity for transformative impact. These ‘Brown’ sectors are poised for transition and, by funding their decarbonisation efforts, investors can reduce emissions, turning them Green.
Navigate ESG Challenges with Long-Term Vision:
Amid growing politicisation of ESG and Net Zero commitments, it’s important to stay focused on long-term opportunities. A credible transition plan and clear value creation strategies are essential for investors to navigate political backlash, while honouring their fiduciary duty.
Think Through the ‘Best Case and Worst Case Scenarios':
When developing an investment thesis or determining how to approach a long term decarbonization strategy, think through the implications of severe physical and mitigation risks as well as the potential upside of investing in green opportunities.