Aligning portfolios with climate goals: A new approach for financial institutions

Measure progress ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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Share this email Share this email on LinkedIn   Share this email on Twitter   Share this email on Facebook   AN ARTICLE A DAY, PICKED BY OUR EDITORS Meeting the goals of the Paris Climate Agreement will require collective effort—and financial institutions have a critical role to play. The great transformation needed will only be achieved by replacing the global economy’s productive asset base with nonemissive technologies; that will take enormous amounts of capital, channeled in thoughtful ways to support the 1.5-degree ambition. So it follows that the financial sector needs appropriate tools and metrics for setting climate targets, then measuring progress against them. A new article dives deeper on issues with current approaches and suggests refinements that could help bend the curve. Don’t miss it. — Torea Frey, managing editor, Seattle Aligning portfolios with climate goals: A new approach for financial institutions Portfolio-alignment tools will help financial institutions chart more scientifically robust, realistic, and profitable climate strategies. Measure progress   Quote of the Day “Hardware improvements aren’t the only route to better batteries. Software control systems can also help, and even make up for shortfalls in chemistry. They can shorten charging times: imagine recharging an EV with a 300-mile range in ten minutes or less, instead of one hour at a supercharger or overnight on most home systems.” —See why that matters, and what else can help address climate change, in “Innovating to net zero: An executive’s guide to climate technology” Chart of the Day See today's chart   Also New Green Africa: A growth and resilience agenda for the continent How the global climate agenda creates opportunities for Africa to build resilience, catalyze sustainable growth, and contribute to the net-zero transition. 10 green opportunities   The coronavirus effect on global economic sentiment Supply-chain disruptions now outweigh COVID-19 concerns as the biggest risks executives see to domestic and corporate growth. Get updated   Asia's consumers on the move: The future of mobility Economic growth and shifting consumer values are transforming the opportunities in Asia for players in the automotive industry. Three recommended actions are keys to success in this new environment. Compete and thrive   Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here. This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Daily Read newsletter. Manage subscriptions | Unsubscribe Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007