Insight Investment comments on World Bank Group’s new set of climate targets for 2021-2025

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The World Bank Group has announced a new set of climate targets for 2021-2025, doubling its current 5-year investments to around $200 billion in support for countries to take ambitious climate action.

Josh Kendall, senior ESG analyst at Insight Investment, a leading global investment management firm, said: “These ambitious targets may influence the wider global community if other development banks follow suit. The World Bank’s focus on adaptation is significant because many nations will need to implement large-scale technical transformations if their economies are to withstand the water shortages and warmer temperatures they are about to experience.

“This announcement forms part of a more general movement to set targets for addressing climate change, a trend which is gaining momentum across the globe. The US may still be committed to leaving the Paris accord it signed up to in 2015 but it is interesting that other nations and entities haven’t followed suit.  Everyone has a responsibility to help transition the global economy to a low carbon one and more action is required from a greater number of institutions if we are to succeed in this respect.

“Shell has just announced that it is setting carbon reduction targets for the first time. It is the first oil company to do so and, even though its targets are short term, they will still mean that Shell makes a greater investment in reducing its output. This will be positive for Shell and its investors and demonstrates how the investment world can influence and help companies to transition smoothly ahead of the more dangerous part of the two-degree world that is emerging.”

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