A recent study found that India may have lost 3 percent of its gross domestic product (GDP) due to global warming. Now, research based on the G7 stock markets offers further evidence that global temperatures are rising rapidly.
A study commissioned by the Science-Based Targets Initiative (SBTi) found that major stock markets around the world are pointing to global warming of 3 degrees Celsius. The study is cited in a recent Bloomberg report.
Current emission reduction targets for major G7 capital landmarks, including the S&P 500, FTSE 100 and Nikkei 225, propose an average temperature rise of 2.95 degrees Celsius from pre-industrial levels.
This is nearly double the Paris Climate Agreement target of 1.5 degrees Celsius, according to a SBTi study. According to the data, the British index and the Canadian S & P / Toronto Stock Exchange 60 index show the greatest warming – 3.1 degrees Celsius.
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The study notes that a 3-degree Celsius rise in temperature will make much of the planet habitable due to the intense heat, resulting in sea-level rise that engulf coastal cities and turning rainforests into savannas.
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The new study also suggests that little has been achieved since the 2015 Paris summit, when world leaders pledged to keep global warming below 2 degrees Celsius in order to keep it at 1.5 degrees Celsius.
However, emissions from the world’s largest companies listed on the G7 stock markets indicate that global temperatures will rise well above the agreed limit. It is also an indicator of how steep the upswing will be to meet the goals set out in the Paris Climate Agreement.
Alberto Carrillo Pineda, director of science at the CDP climate disclosure nonprofit and member of the SBTi steering committee, warned that the climate emergency would become irreversible with a warming of 3 degrees Celsius and would have “catastrophic human and economic consequences. impact ”in every country on every continent.
“It will change our lives,” he added. The report was prepared for SBTi CDP and the United Nations Global Compact, which encourages businesses to set more sustainable goals.
The temperature in the study was calculated based on assumptions about greenhouse gas emissions, with a focus only on the targets that companies have set for the period 2025 to 2035.
None of the G7 stocks are currently moving on a trajectory of 1.5 degrees Celsius, with Germany’s Dax having the lowest temperature alignment at 2.2 degrees Celsius. However, the S&P 500 is on a 3 degree Celsius trajectory.
The study also recommends several actions that the G7 countries can take to help them achieve the goals of the Paris Climate Agreement. Some of these are closer public-private partnerships, decarbonizing supply chains and creating a domino effect by setting tougher climate targets at the portfolio level.
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