Episode 11 Part 2: Fiduciary duty and the limitations of GFANZ

In part two of our latest Climate Change podcast episode, Tom Gosling, Executive Fellow, London Business School and John Teahan, CFA continue the conversation by discussing Tom’s two blogs on the Glasgow Financial Alliance for Net Zero (GFANZ) and the clash that developed over commitments made under that umbrella body. Tom explains that the overarching commitments made by GFANZ to limit global warming to 1.5C, which scientists claim is almost impossible. This creates limitations for asset managers who must now quickly energise the transition at the portfolio level to support climate solutions and policy. He discusses whether 1.5C is an optimal target for investors, whether portfolio decarbonisation has a tangible real-world impact, and the implications of these targets on future market trends. Does this mean that asset managers are being forced to hit unreasonable targets? And are we inhibiting government action by doing so? Explore the conversation by listening today.