Unsustainable human activities have generated threats including climate change, associated with rising sea levels, extreme weather and flooding. Carbon emissions play a significant role in global warming, with current efforts focused on encouraging companies to report and reduce emissions.
However, this may prove to be insufficient to meet the UN FCCC (United Nations Framework Convention on Climate Change) intended aims of holding the increase in global average temperatures to well below 2°C above pre-industrial levels while attempting to limit increases to 1.5°C. What is needed is a definite move towards carbon-neutrality. Ethical investors can play a role by challenging company boards on their strategies to achieve net-zero carbon emissions.
Q G Rayer (2019), The need for carbon-neutrality, DISCUS, available at http://discus.org.uk/the-need-for-carbon-neutrality/, 4 pages, 1 August 2019.