Smacc

Financial markets have recognised that the climate emergency is also a financial emergency. A report out of Harvard recently stated that nearly 1 in 5 deaths globally are associated with burning fossil fuels. Incredibly, the Covid19 pandemic has changed how we see the climate crisis in a number of ways. Firstly, it resulted in an unprecedented decline in global energy consumption during 2020. Secondly, it showed us that in order to deal with the pandemic we must listen to science and take action at a global level. Thirdly and somewhat conveniently, a trade war emerged between Saudi Arabia, the U.S and Russia over oil, leading to a collapse in the price of both oil and liquid natural gas (LNG) and a 60% decline in the leading global oil companies. This resulted in pressure on the financial sector to transform their thinking around fossil fuels, as they realised the potential for the climate crisis to become a wealth crisis. A 60% collapse in the value of Exxon is a very good reminder to financial leaders that