Article

The path to net zero: Capturing the opportunity in the UK

The path to net zero:  Capturing the opportunity in the UK

The UK is leading the charge against climate change and has already taken steps compared to many of the world's largest polluters. With an economy focused on service industries, the UK’s carbon intensity has fallen over the last decade, and the government has announced various measures to accelerate the transition to net zero.

UK CO2 emissions (million metric tonnes per year) 1
UK CO2 emissions (million metric tonnes per year) 1

Source:

Investment portfolios will increasingly reflect the realities of the transition. The asset allocation of our exchange traded funds (ETFs) provide investors with a range of options to match their own personal views and objectives. Some of our environmental, social and governance (ESG) ETFs apply net zero targets aligned with the Paris agreement on climate change. They aim to reduce carbon intensity and provide exposure to companies investing in decarbonisation.

Footnotes

  • 1 Notes: Annual data from 1990 to 2020. Production-based CO2 data is the common way to report emissions (it is the CO2 emitted by a country in a given year). Consumption-based data allows for trade: for example if country A produces goods that are exported and consumed in country B, then the associated CO2 is subtracted from country A emissions and added to those of country B (adjustments are performed by the Global Carbon Project). It is a better reflection of lifestyle contributions to emissions.

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • Data as at 31 December 2021 unless otherwise stated.

     

    Any calculations and charts set out herein are indicative only, make certain assumptions and no guarantee is given that future performance or results will reflect the information herein.

     

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

     

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