Phoenix : Skidmore Review Highlights Net Zero is the Economic Opportunity of the Century

Earlier this week, Chris Skidmore, MP, launched a review at the behest of the Government to set out how to reach its legally binding decarbonisation target of net zero emissions by 2050. We have our own ambitious net zero plans which include achieving net zero in our own operations by 2025 and by 2050 we aim to have a net zero supply chain and crucially, to achieve a net zero investment portfolio.

As a large asset owner, it is vitally important that we and other large asset owners take ambitious steps to tackle climate change but government must play its part too. In particular, governments set public climate policy, which will be a key determinant of the speed and shape of changes in the global economy.

Ahead of the Government's revised Net Zero Strategy next year, we and our industry peers, have called for clear policy on decarbonisation pathways to avoid the choice between divestment and emissions continuing in the real economy; or continuing to hold assets but failing to meet our net zero targets. Healthy financial outcomes and climate friendly investments are not mutually exclusive, on the contrary, as the Skidmore report outlines, net zero is the economic opportunity of the 21st century.

The review was clear that the pace of recent change has created a rush of economic opportunity at a massive, global scale, accelerated by the USA's $369 billion investment in clean technology through the Inflation Reduction Act and the 'France 2030' investment plan in France to the EU's 'Fit for 55' programme.

The UK is already recognised as a leading green finance hub and enjoys a comparative advantage over other advanced economies in that area as well as in technology such as offshore wind.

The Net Zero Review team's engagement with business and their own analysis have shown that the benefits of decarbonisation are larger if it is done sooner and the costs of failing to act now are high. Therefore, we e encourage government to act quickly and decisively to seize the economic opportunities that net zero presents.

The review states, 'An unstoppable and essential drive to decarbonise is re-shaping the global economy, bringing a new era of opportunity. The UK has a golden chance to grasp this opportunity - but it requires serious and renewed commitment, more than justified by the prize on offer and the cost of missing out.'

As a large asset owner and institutional investor, we urge government to respond to this comprehensive and sweeping set of recommendations and provide the 'long-term policy certainty and incentive frameworks for industry and investors to seize the economic opportunities at hand' and to deliver the benefits to individuals, households and businesses outlined in the report.

As a large asset owner and institutional investor with capital to invest, we urge government to respond to this comprehensive and sweeping set of recommendations and provide the 'long-term policy certainty and incentive frameworks for industry and investors to seize the economic opportunities at hand' and to deliver the benefits to individuals, households and businesses outlined in the report.