// . //  INFocus //  This Is The Real Cost To Reach Net Zero By 2050

Why integrating environmental, social, and governance factors into the investment decision-making is vital for ensuring clients stick to sustainability plans.

 

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INFocus provides exclusive insights and trends from experts and leaders across the Asia Pacific region, exploring the forces, opportunities, and challenges shaping its future.

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Did you know about $50 trillion in incremental investments is required by 2050, to transition the global economy to net-zero emissions, and avert a climate catastrophe?

The need to build infrastructure which is supportive of the transition has led to an adoption of ESG factors for investment decision-making.

This includes reduced carbon intensity, and in some cases, more flexibility and responsiveness to demand trends.

In fact, infrastructure investing is already driving some of the most important contributions towards a lower carbon economy. 

There is further evolution to take place in key metrics assessing sustainable investments, and quantitative measures are often difficult to compare in order to benchmark assets.

However, there is also an opportunity for stakeholders to improve the integration of ESG factors into investment decisions, to support the infrastructure sector playing its critical role in achieving net zero.

Delivering on net-zero outcomes is as much of a social and financial imperative as an environmental one.

At Oliver Wyman, we assess the future trajectory of asset classes, as they relate to ESG requirements from investors, governments and lenders to ensure they are well suited to remain in line with clients’ greenification plans.

Together, we can accelerate these breakthroughs.