Understanding the Importance of the journey to Net Zero

Understanding the Importance of the journey to Net Zero

October 2023 | 5 minute read | Marketing Communication

Zero isn't nothing. It's a long way from nothing: zero is the biggest, most significant target that we humans have ever set ourselves.

We're talking about Net Zero. It's a phrase you have no doubt heard on television and the radio and read in the news headlines. 

But what does it mean? Why does it matter? And what can you do, as an individual and an investor, to help the world reach Net Zero?

What is Net Zero? 

While getting there won't be without challenges, it's a simple enough idea – Net Zero is about balancing the amount of greenhouse gases we're pumping out into the earth's atmosphere with the gases we're removing.¹ If we can reach zero, we won’t be adding to the total amount of greenhouse gases, which trap the heat from the sun and increase global temperatures.²

Why does Net Zero matter? 

Getting to Net Zero would help to limit rising temperatures. If we can reach zero by 2050, scientists say, we could ensure that global average temperatures rise less than 1.5 degrees Celsius above pre-industrial levels.³ That would help to prevent a climate change catastrophe.

In a Net Zero world, countries would continue to be able to produce the food they need to feed their populations.⁴

 Net Zero would also mean that by limiting temperatures more coastal and low-lying areas would remain habitable – otherwise, the polar ice caps will continue to melt at a faster rate, causing sea levels to keep rising.⁵

On top of all that, there would be a lower frequency and intensity of extreme weather events – such as dangerous heatwaves and flooding.⁶

The journey to Net Zero could boost our health as air quality could be improved, and using more sustainable modes of transport, such as walking or cycling, could enhance our physical health and mental wellbeing.⁷

What could individuals do to potentially contribute to a Net Zero world? 

Perhaps you're reading this and feeling as though you don’t know where to start to do your part? The important thing to know is we’re all in this together and we can each do our bit to contribute to a Net Zero world. As individuals, there are adjustments we can make to our lifestyles that would collectively have an impact.⁸ Similarly, as investors we can also make choices with our investments that could potentially get us closer to zero. 

To find out more about Net Zero

or to see how you can use your savings to potentially help achieve the global Net Zero objective

click here

Sources: 

1 Amundi 2023

2 BBC News (19/10/2021) Net zero announcement: UK sets out plans to cut greenhouse gas emissions

3 Intergovernmental panel on Climate Change

4 https://www.theguardian.com/environment/2023/jul/21/rampant-heatwaves-threaten-food-security-of-entire-planet-scientists-warn

5 National grid (2022). Why is net zero so important? 

6 A. Hartley (2022). What are the benefits of reducing global CO2 emissions to net-zero by 2050? Wiley Online Library

7 NASA’s earth science team (2022). Reducing Emissions to Lessen Climate Change Would Yield Dramatic Health Benefits by 2030. NASA

8 P. Brown, The Guardian (20/01/2023). How you can help Britain meet its net zero climate goal

Important Information

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 10 October 2023. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.

Date of first use: 10 October 2023

Doc ID: 3086991