Last year, there was an increase in private sector commitments to addressing climate change, and 2022 appears poised to be focused on accountability and measurement of those commitments and how they might push development finance institutions to adjust their own work.
The growing number of net-zero commitments, climate finance, and SDG investments last year created “growing skepticism, distrust and cynicism about what is actually happening” and whether funding is flowing to those who need it, said Amit Bouri, CEO at Global Impact Investing Alliance.
So this year will see “a big shift from pledges to a focus on performance,” he said. That means companies and investors should operationalize pledges and boost their alignment on standards — either through voluntary mechanisms or regulation — in a way that drives progress on the sustainable development goals and the Paris Agreement climate targets, Bouri said.