Finance Monthly - January 2022

s the world watched on, global leaders, scientists and academics convened at the COP26 Summit in Glasgow in November, as Prime Minister Boris Johnson warned that the “doomsday clock is still ticking” in the effort against climate change. While this enormous undertaking has truly only just begun, traders and investors have no doubt been pricing new commitments into their portfolio management strategies. All things considered, the path to a greener future is paved with investment opportunities, but this has not necessarily translated immediately to the stock market. Although the first day of trading on the London Stock Exchange following the summit saw some global mining giants take a hit, the FTSE 100 still managed to close the day out up 3.95 points, or 0.05%, at 7351.86. Typically, the markets struggle to account for any long- term view, and this remains the case post-COP26. This is especially the case considering that world leaders have mostly been speaking in terms of “phasing down”, rather than “phasing out” coal. For this reason, it is not exactly surprising that research* commissioned on behalf of HYCM has shown that only 45% of investors consider sustainable investing to be important to them. Without concrete and robust action to tackle climate change, it is perhaps even less surprising that caution still prevails Finance Monthly. Inve s tmen t 49