The geometry of net zero: an accounting conundrum waiting to happen - Federated Hermes

Emissions accounting is often used as a tool to measure progress on the route to net zero, but such methods can be inconsistent, inaccurate and imply that climate change can be reduced to a book-balancing process. As the investment opportunities surrounding climate change proliferate, it is existentially vital that investors defer to the science.

This content is restricted to Affiliate members only. Please login or join to view.

... Fast reading:
  • Even if the entire global energy supply were to transition to renewables tomorrow, this would not be net zero.
  • If climate impacts cannot be treated as smooth functions then the arithmetic of net zero cannot be treated as one-dimensional.
  • Sustainable investment is about operating within dynamic, volatile and uncertain systems, not seeking comfort in fragile simplicity.

Learn more here