Handelsbanken signs open letter to policy makers calling for increased climate ambitions

Under the global coalition We Mean Business, Handelsbanken has joined companies from around the world in signing an open letter to the leaders of the G20 countries. The letter calls on governments to strengthen and re-commit to the 1.5°C goal of the Paris Agreement.

From wildfires in the US, persistent drought in West Africa to extreme rainfall and flooding in central Europe, the effects of climate change are visible around the world. According to the UN, more than 30 million people were displaced by climate-related disasters last year. While the main responsibility for climate policy belongs to governments, the private sector must, and wants to be a driving force in the transition. Ultimately, developing societies as well the business world within safe planetary boundaries is in the interest of countries, businesses and people alike which is why Handelsbanken has chosen to sign the open letter calling for the G20 countries to heighten their ambitions ahead of COP26 in Glasgow.

"Climate change is a priority for the whole financial sector. Handelsbanken will continue to support our customers in their move to sustainable solutions and we have high expectations on the companies we finance and invest in. We have even higher demands on ourselves. We are not there yet, but we are convinced that this is the only way forward", says Catharina Belfrage Sahlstrand.

As one of the signing businesses we call on the G20 Leaders to keep the Paris Agreement’s 1.5°C goal within reach by: 

• Strengthening NDCs in line with at least halving global emissions by 2030, and committing to achieve net-zero emissions no later than 2050. We urge you to publish long-term strategies, detailing pathways to 2030 and 2050 as soon as possible. 
• Committing to ending new coal power development and financing immediately, and developing plans to phase out coal-fired power generation by 2030 for advanced economies, and 2040 for other countries, while promoting electrification of transport and uptake of renewable energy across sectors. This should include removing barriers to corporate purchasing of 100 percent renewable electricity to enable companies to go quicker in their clean energy transition and invest more than policy currently allows in many jurisdictions. 
• Aligning public finance, COVID-19 recovery spending and fiscal policies with a 1.5°C trajectory, while ensuring adequate support for adaptation and resilience measures. Important measures include:  
• Delivering on existing public climate finance commitments such as the US$100 billion for developing countries. Adequate levels of international public climate finance can contribute to developing new markets for private finance by stimulating investments in support of climate-resilient green infrastructure and nature-based solutions. 
• Ensuring appropriate pricing signals by removing fossil fuel subsidies ideally by 2025, and putting a meaningful price on carbon that reflects the full costs of climate change as part of a broader mix of policy instruments to support clean technology investments and innovation. 
• Making climate-related financial disclosure of risks, opportunities and impacts mandatory for corporations, to increase transparency and support better informed pricing and capital allocation to encourage investment flows towards more sustainable activities. 

We Mean Business is a global non-profit coalition working with the world’s most influential businesses to take action on climate change. You can find additional information on the coalition here: wemeanbusinesscoalition.org