The report from the UN's Intergovernmental Panel on Climate Change concluded, in its strongest clarification yet, that humans are unequivocally to blame for global warming.

Temperatures will continue to rise and could surpass pre-industrial temperatures by 2 degrees celsius by the end of the century if emissions are not cut. The report also detailed that even the most severe cuts are unlikely to prevent warming of 1.5 celsius, and that the ongoing impacts of “tipping points,” such as the melting of arctic ice sheets or the destruction of forests, could not be reversed.

The goal of the Paris Agreement is to limit warming to 1.5C, but the report warns that humans are running out time. Keeping global warming below this limit will now require sticking to a "carbon budget," meaning limiting the amount of additional carbon released into the atmosphere. Read more via Reuters. 

A "wakeup call" for financial services

Activists are hoping the report will now be a “wake up call” for financial services in encouraging policymakers, companies and startups to support green policies.

While much of companies sustainability efforts will be focused on ESG initiatives, the report should also trigger regulation and management of assets, for example, and incentivise institutions to take note of the risks outlined in the report due to the ability to affect portfolios by harming operations and supply chains 

As Head of Sustainability at Morningstar, Jon Hale, recognised, “climate change should be a part of every client conversation.”

Read more via Forbes.

Companies must do more than carbon offsetting 

The report comes as wildfires continue to blaze across California, Siberia and Greece. 

Companies have responded to calls from fund managers to take climate action in the past through carbon offsetting backed by forestry, but since more extreme weather conditions and wildfires are destroying forests, these projects cannot be considered carbon neutral. This means companies will need to take concrete, transparent steps to drive carbon reductions. 

Read more via The FT.

Green investors to watch 

As pressure mounts on investors and startups to adopt green policies, Sifted.eu has compiled a list of Europe’s sustainability angel investors, which features UK investors Caroline Halliday and James Manktelow. 

Halliday, who is part of the Green Angel Syndicate, had invested in more than seven sustainable startups in the last year, including startup for remote operated vehicles services, Rovco and biodiversity monitoring company, NatureMetrics. 

Meanwhile Manktelow, who also invests through Green Angel Syndicate, has made ten sustainable investments, in addition to launching a mentoring for early-stage, university-based green startups.