February 24, 2021
Our planet has been logging the warmest years on record, and we are increasingly experiencing the adverse effects of climate change. It has been widely recognized that climate change is being triggered by higher levels of greenhouse gases. What can we do about it? In this podcast, Sage CIO Bob Smith and ESG Research Analyst Andy Poreda discuss the importance of reaching “net zero” emissions in an effort to tackle climate change. Listen here.
For Sage’s perspectives piece on the challenges companies face in the race to becoming net zero, click here.
Transcript:
00:00
Bob Smith: Good day. I’m Bob Smith, Chief Investment Officer at Sage Advisory, and I’m joined today by my colleague Andy Poreda, Senior Analyst in our ESG research team. We’re here to talk about the concept of net zero. Many of us have heard the term net zero, but how many investors really understand the meaning and goals that define this concept and how they might relate to their investment portfolios today, as well as in the future? Our ESG research team, led by Andy, recently released a very interesting report entitled “Net Zero Heroes: Understanding Corporate Challenges, Realities, and Goals.” From countries and companies, to individuals, tackling climate change is at the top of everyone’s agenda. One way we can help to do this is to reach net zero. So, what does it mean to be net zero? We’ve all heard the term net zero. But what exactly does it mean? Simply put, net zero refers to the balance between the amount of greenhouse gas produced and the amount removed from the atmosphere, we reach net zero when the amount we have is no more than the amount taken away. Why is net zero important? Reaching net zero is important as it’s the best way we can tackle climate change by reducing global warming. What we do in the next decade to limit emissions will be critical to the future, which is why every country, sector, industry, and each one of us must work together to find ways to cut the carbon we produce. So, let me ask you, Andy, when does the world need to reach net zero? And why?