The meeting focused on three key points: (i) a just transition to a low carbon economy, (ii) introducing reliable and meaningful carbon pricing and (iii) transparency in reporting climate risks. Accords on both carbon pricing and transparency of financial risks were signed by the CEOs of oil & gas and finance companies. Nusseibeh signed the two accords on behalf of Hermes Investment Management, evidencing its commitment to taking genuine action on the climate crisis. The group was then addressed by His Holiness the Pope who emphasised the need to act to protect our common home.
Chief Executive, Saker Nusseibeh, said: “The environmental crisis that we currently face with regards to global warming demands urgent action, and we are all very grateful for the Church under the aegis of Cardinal Turkson and the University of Notre Dame ably led by Dr Carolyn Woo and Leo Burke for convening this group and facilitating the dialogue that has led to us finding common ground, building on our meetings of last year. The commitment from the CEOs of the major oil companies, the CEOs of some of the largest asset managers and from some of the largest asset owners in the world reflects the importance of this topic and the commitment of all present to tackle it. In this dialogue, the Holy Father’s views were an inspiration and a beacon of moral leadership.”
The statement on Carbon Pricing confirms that its signatories support the creation of meaningful carbon pricing regimes by governments, in order to encourage responsibility, innovation and transparency in the market. Speaking on this topic, the Pontiff described carbon pricing as “essential if humanity is to use the resources of creation wisely.”
The second accord refers to increased transparency in reporting climate risk. Its signatories agree that companies need to provide clarity for investors on their plans for the energy transition, encouraging companies to recognise the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD.)
Nusseibeh’s involvement in the dialogue and signing of the accord demonstrates Hermes’ commitment to the creation of a global financial system that delivers sustainable and impactful outcomes for the society as well as long-term returns on investments.