World Economic Forum Participants Make Plans for Climate Action

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February 4, 2020

The World Economic Forum held its 50th annual meeting in Davos, Switzerland, focusing on the theme “Stakeholders for a Cohesive and Sustainable World.” The theme was timely, as financial institutions have become increasingly concerned with incorporating climate risk into business models.

Some of the most notable new climate initiatives rolled out during WEF include:

  • A group of investors called the Net-Zero Asset Owner Alliance, representing over $4 trillion in assets, committed to creating a zero emissions portfolio by 2050 to align with the goals set forth by the Paris Agreement.
  • The Bank of England governor Mark Carney announced the bank's commitment to creating “company accounting standards for climate-related risks,” which will aid in the transition away from fossil fuels.
  • The One Trillion Trees Initiative was announced, which aims to plant or restore one trillion trees globally by partnering with grassroots organizations, businesses, and governments around the globe. The United States also announced its commitment to this plan.
  • The United Kingdom's Prince Charles presented the Sustainable Markets Plan, a 10 point framework for governments and businesses to reach net zero carbon emissions. This plan outlines his economic vision to “generate long-term value through the balance of natural, social, human and financial capital.”   
  • World leaders and businessmen such as U.N. Secretary-General Antonio Guterres, Alibaba CEO Jack Ma, and WEF Executive Chairman Klaus Schwab emphasized the urgency of the climate crisis and discussed ways to mobilize businesses to respond.         

Participants broadly called for carbon markets, divestment of fossil fuels, and a “better capitalism,” but how to achieve those ends remained in question as the summit concluded. While having climate change at the top of the WEF agenda is an encouraging sign for environmentalists, the biggest challenge—of putting those plans to action—remains.

 

Author: Katherine Kneuper