The need to rebuild after the Covid-19 pandemic offers an opportunity for a just transition to a clean economy – an opportunity foundation investors must take
Crises can be moments of transformation. The catastrophic failure of the financial system in 2007-09, for example, highlighted the need for truly sustainable finance and the prudent management of systemic risk. This in turn boosted the rise of responsible investment and enabled climate analysts to highlight the carbon bubble that was lurking beneath continued investment in fossil fuels. A decade on, and billion-dollar write-downs from oil majors such as BP and Shell have shown the growing significance of the stranded asset agenda.
In the Covid-19 crisis, it is striking how quickly civil society along with leading political and business leaders have converged around the need for a recovery that is not only ‘green’, but also inclusive. In the UK, for example, over 200 businesses have called on the government to use its recovery plans to deliver a clean, just recovery.