Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • News

Heavy industry warned of $856bn climate risk

Open-access content Wednesday 17th February 2021
Heavy industry warned of $856bn climate risk

Companies worth a total of $856bn (£619bn) in the heavy industry sectors are failing to align their CO2 emissions with the Paris Agreement, analysis by the Transition Pathway Initiative (TPI) has found.

After analysing 111 large publicly-listed industrial companies, the TPI found that just 16 are aligned with an emissions reduction pathway that is compatible with keeping global warming at 2°C or below.

The firms come from the aluminium, cement, diversified mining, steel and paper sectors – which account for roughly 25% of total energy emissions – and are deemed ‘hard to decarbonise’ as there is no straightforward low-carbon replacement technology for their products or processes.

Only one company in the aluminium and paper sectors was found to be aligned with a 2°C or below pathway by 2050, compared with six steel firms.

“A stark $856bn market risk jumps out at investors from today’s research, with only 14% of heavy industry companies on a path to keep global warming at 2°C,” said Adam Matthews, co-chair of the TPI.

“From recycling systems to technological innovations, the solutions are now there, and investors are ready to push for much bolder action from these sectors in the run up to COP26.”

The findings show that the outlook for the heavy industry sector is marginally more encouraging for climate-conscious investors from a 2030 point of view, with 22% of companies aligned with 2°C or below before then.

The reason fewer are aligned with 2°C or below after 2030 is because the pace of decarbonisation required in the industrial sector really picks up next decade, requiring drastic falls in emissions between 2030 and 2050 to meet Paris Agreement goals.

The TPI said that more industrial companies need to set longer-term targets to 2050 that require greater levels of decarbonisation.

“Industrial sectors like mining and steel form the building blocks of the global economy and are some of the hardest sectors to decarbonise,” Matthews continued.

“But they account for more than nine gigatons of greenhouse gases, and key decisions will be taken by companies and investors over this coming decade that will determine the role they will play in societies achievement of the Paris Agreement.”

 

Image credit: iStock

Author: Chris Seekings

Also filed in:
News
Topics:
Investment
Environment
Global

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ