Developments in China and India regarding mitigation of climate change issues as well as economic issues associated with it are key determinants for future global state of world. So far, both have prioritized economic growth over responsible growth. However, this appears to be changing. This can be concluded from a recent analysis carried out by Solaron, an independent ESG research agency.
China has, for a long time, pursued economic growth, over other concerns. This started to change, as enlightened self-interest led to significant investments in renewable energy over the last two decades. India, oppositely, has had a slow start to the climate change journey. International pressure and pragmatism has led to a spate of policy measures in the last decade.
The financial sector has an important role to play in this, which we fully acknowledge at Nordea Asset Management. We have the responsibility to allow our customers to invest their money in more sustainable companies, which are also the businesses that are most likely to survive and thrive in a new low-carbon economic era.
You can read the full study of climate change targets for India and China here (PDF, 5 MB), including a foreword by Sasja Beslik, Head of Responsible Investments at Nordea Asset Management.