WEBVTT

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Greetings from Glasgow. I'm here at COP26,

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joined by world leaders, climate activists,

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and civil society.

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The question I often get is,

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"What role can the financial sector play

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in driving down emissions?"

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Continued push for climate disclosure-

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we've made great progress in the public markets,

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we need to make similar progress in the private markets.

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Commitments to net zero by 2050-

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40% of assets under management have made such commitments,

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we need to close the gap.

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But in addition to disclosure and net-zero commitments,

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there are additional moves that we need

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to put more energy into, starting now.

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The first is engaging with management teams

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to decarbonize the businesses

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in which the financial sector invests.

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We did a study at BCG

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where we looked at eight supply chains.

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Together they represent 50% of global emissions.

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We found that 40% of the emissions

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in those eight supply chains can be taken out

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at a cost that is less than $10 per tonne of carbon.

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And therefore engaging with the management teams

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of these companies to drive down emissions is an imperative.

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Another imperative is price on carbon.

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In that same study, the next 40% can be addressed

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at a cost that is between $10 and $110,

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with existing technologies.

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And therefore, the financial sector has an imperative

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to work with policymakers to introduce a price on carbon,

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to enable management teams of these businesses

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to drive down that next tranche of emissions.

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And that final 20% of emissions, according to our study,

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requires the scaling of some of the most promising

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climate technologies out there.

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And therefore bringing capital to some of these ventures

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that are seeking to address this final 20%,

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to seeking to close the gap, is where we need

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the financial sector to make a concerted focus.

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In a nutshell, disclosure, net-zero commitments,

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engaging with management teams, price on carbon,

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and bringing capital to some of the most promising ventures

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is where we need the financial sector to focus

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and to continue driving.