LifePath®: Helping keep your retirement on track

Today, the world emits about 60 gigatons of greenhouse gas a year to power the economy and our lives.

So, think the food we eat, how we get places, where we work, how we live.

We can’t turn all of that off overnight but we can take steps to get on a path to a net zero world.

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Title: The net zero economy is arriving

Net zero is about reducing greenhouse gas emissions so that over time we can achieve an overall balance between emissions produced, and the emissions removed from the overall atmosphere. So, for every ton of greenhouse gas we emit into the air, we would take a ton out.

(Graphic text: Net zero = Greenhouse gas emissions produced ≤ emissions remove)

(Graphic/text animation) The latest science shows that if we reach net zero by midcentury, essentially if we achieve the goals outlined in the Paris Agreement, it would limit global warming to well below 2°C versus pre-industrial levels.* If we exceed that level, scientists say that we’ll suffer from the most detrimental climate impact.

*Source: Climate Council, “What does net zero emissions mean?,” 2020

(Graphic/ text animation)

To date, 127 governments around the world and over 1,000 companies have made or are preparing to make net zero commitments. And we expect that number to go up.

*Source: Climate Action Tracker, “Warming Projections Global Update” December 2020 and UN News, “UN chief stresses need for greater speed to achieve carbon neutrality,” November 9, 2020

This is also being reflected in the financial system. Regulators are making climate risk disclosure mandatory, central banks are stress testing for climate risk, and policymakers around the world are collaborating to achieve common climate goals.

Climate change is a collective problem that requires collective global action. People have to understand that achieving net zero in 2050 isn’t something we can start in 2049, we have to start today.

Lastly, and most importantly, as with any transition, we have to make sure it’s a just transition. We really have to work together to make sure that no one group, whether it’s a community or an industry gets disproportionately left behind.

The bottom line is that achieving global net zero emissions by 2050 is our best chance at mitigating the worst impacts of climate change. // This is going to a large structural change in our economy. // And companies that manage to evolve and adapt their business models are going to be rewarded by the financial markets over the long term.