News
CO2 emissions have fallen by 19% in Europe but risen by 14% in Spain since 1990
• Although the study notes that socially responsible investment funds (SRI) are gaining popularity in the finance industry, Spain is only home to 16 SRI funds, 1% of all such funds in Europe
• The food industry, one of the sectors most affected by global climate change, is responsible for 25% of CO2 emissions and 70% of water consumption
The effects of climate change are increasingly visible and the problem is likely to worsen in the coming decades, according to the new report The Transition to a Low-Carbon Economy: A Look at the Finance and Food Industries, written by ESADE’s Institute for Social Innovation, in collaboration with Caja de Ingenieros Foundation. The study, which was presented today at ESADE, reveals that Europe’s CO2 emissions have fallen by 19% since 1990, thanks to international agreements to combat climate change. In Spain, however, emissions have risen by 14% in the same period.
Socially responsible investment: an opportunity for the finance industry
The report shows that the financial sector considers climate change to be a “systemic risk but also a major opportunity, for three main reasons:
1. Opportunities to finance the technologies of the low-carbon economy are proliferating. At present, $600 billion is invested each year in solar and wind power, hybrid vehicles, and LED lights.
2. Sustainability criteria are increasingly being included in investment strategies. The report describes a boom in socially responsible investment (SRI), green bonds, climate bonds and impact investment.
3. Environmental impact is increasingly being taken into account in financial indexes, in initiatives that measure carbon footprints, and in major financial data platforms.
On the global scale, the study reveals that Europe is the region where SRI is most widespread: nearly 60% of assets take some sustainability criteria into account.
In Spain, the SRI universe is underdeveloped. In 2014, only 16 SRI funds – that is, approximately 1% of all such funds in Europe – were registered in Spain, managing a total of €1.8 billion.
Nevertheless, the report indicates an upward trend for SRI funds in Spain and shows that many of the world’s most innovative funds are marketed in Spain.
“In the finance world, the most important thing is that there is a positive correlation between decarbonisation and the bottom line: sustainable investment is more profitable than conventional investment, commented Heloise Buckland, a researcher at ESADE’s Institute for Social Innovation and co-author of the report.
“At Caja de Ingenieros, we are committed to socially responsible investment, which we promote through our financial products and our institution’s CSR policy. This is why we recently launched a new fund called CI Environment ISR, FI – to contribute to the fight against climate change, commented José Oriol Sala, President of Caja de Ingenieros.
The food industry: the problem and the solution?
The new report notes that the food industry generates 25% of worldwide greenhouse emissions and is one of the sectors most affected by climate change throughout the value chain. In Spain, the glaciers of the Pyrenees have shrunk from 3,300 to 390 hectares since 1900, and the report warns that Spain is at risk of desertification: 49% of Spanish territory could be unsuitable for crops by 2041.
The study highlights the efforts of certain Spanish companies – including Eroski and Danone – that have started to introduce strategies such as improving energy and hydraulic efficiency and transitioning towards renewable energy sources, organic agriculture, environmentally friendly design and sustainable logistics to address these risks.
