In our latest Accord Talks podcast, we discuss the COP30 climate conference in Belém, Brazil, starting today (10 November). It is likely to dominate headlines – but beyond the political theatre and photo ops, what does it actually mean for financial advisers? The answer: more than you might think.
Over the years, the UN Climate Change Conferences of the Parties (COP) have become a cornerstone of international climate policy. They shape regulations, influence capital markets and set the tone for sustainability disclosure requirements that advisers now work with every day.
Understanding what a COP is (and isn’t) helps advisers navigate the investment landscape, make informed product selections and engage clients in more credible, values-aligned conversations.
What is COP?
COP stands for the “Conference of the Parties” under the UN Framework Convention on Climate Change (UNFCCC), a treaty adopted in 1992. Every year since 1995, member nations (known as “Parties”) gather to assess progress on climate action and negotiate updates to their commitments.
Some COPs are technical in nature, while others are historically significant – think Kyoto (1997), Copenhagen (2009) or Paris (2015), where the landmark Paris Agreement was signed.
Much of the public focus is on high-level negotiations, but a huge amount of activity takes place on the sidelines
Under Paris, countries committed to limiting global temperature rises to well below 2°C, with efforts to keep it under 1.5°C. Instead of top-down targets, each country submits its own Nationally Determined Contribution (NDC), updated every five years.
COP30 in Brazil is a key milestone, because it’s a formal “NDC year”. Nations are expected to raise their ambitions again. Whether or not they do and how that ambition translates into action has direct implications for policy, investment trends and public sentiment.
What happens at COP (and why advisers should care)
Much of the public focus is on high-level negotiations, but a huge amount of activity takes place on the sidelines. This is often where the investment implications come into sharper focus. Hundreds of side events are hosted by businesses, asset owners, NGOs, cities, investors, scientists, and even youth and indigenous groups.
Some of the biggest investment announcements are made here – not on the main stage. This is where capital meets policy. Private capital flows, net zero frameworks, sector-specific climate targets, nature-based solutions and innovation roadmaps all feature heavily.
Understanding global climate mechanisms adds context and confidence to due diligence and disclosure use
In recent years, finance-focused days have become a fixture at COPs, reflecting the central role that markets play in funding the transition.
Advisers don’t need to follow every detail. But understanding the function and focus of COP helps make sense of what terms like “Paris-aligned” or “SDG-focused” actually mean when they appear in fund disclosures and product narratives.
The influence on advice and due diligence
The COP process may feel remote from day-to-day advice, but its outcomes cascade. For example, how climate policy shapes regulation, how corporate behaviour is influenced by COP-aligned frameworks (such as net zero targets, reporting standards and investment screening) and how capital markets respond to signals. All of these factors can influence funds and products.
For advisers, all of this feeds into fund selection and client suitability. Understanding global climate mechanisms adds context and confidence to due diligence and disclosure use.
Positive signals amid complex realities
There are encouraging signs. Capital expenditure into the low-carbon economy hit $2trn globally last year, up from $160bn in 2009. Renewable energy overtook coal as the world’s leading source of electricity in early 2025.
But there are still major challenges. Emissions remain at record highs. Around 80% of global primary energy still comes from fossil fuels. And current policies put us on track for 2.6°C to 3.1°C of warming — well beyond the 1.5°C goal.
ESG Accord: Where, when and how to discuss sustainability and values with clients
This contradiction may be difficult to navigate for individuals and advisers alike. Clients may feel hope and despair in equal measure. Some may experience climate anxiety or grief — and this must be handled carefully and with awareness within the advice process.
That’s where robust frameworks help – all the way up from the advice firm’s suitability process to assess a client’s preferences and objectives, to the fund managers’ disclosures and objectives, to the asset owners’ policy and mandates, to the regulatory steering, to the COP processes, NDCs and the broader Paris architecture.
All help to provide structure, predictability and crucially accountability. As advisers, understanding these mechanisms and the chain helps when discussing preferences, sustainability and risk with greater credibility.
COP, tipping points and client impact
COP30 will take place in the Amazon, a region central to climate and biodiversity outcomes. The location itself sends a signal. So does the recently released Global Tipping Points Report – a pre-COP contribution from over 160 scientists that highlights both the risks of negative tipping points (like coral reef die-off) and the opportunities of positive ones (such as mass electric vehicle adoption).
COP is a signal. It shows where governments, regulators, investors and clients are heading
These are not abstract issues. Clients are increasingly attuned to them. If a client expresses a desire to invest for a cleaner future – perhaps even to fund a trip to the Barrier Reef – it matters that their investments aren’t inadvertently contributing to the loss of that very destination.
This is where advisers may play a critical role in bridging emotion, regulation and informed choice.
Practical implications for advice firms
So, what can advisers do?
- Use COP knowledge to interpret disclosures. When a fund says it aligns with the Paris Agreement or supports SDG 13 (Climate Action), you’ll know what that actually means.
- Support informed, compliant conversations. The FCA expects advisers to record client preferences, including non-financial objectives. Understanding the global issues offers insights to support better understanding and documentation.
- Communicate clearly and confidently. You don’t need to be a climate scientist. Use the SDR consumer-facing disclosures – they’re designed to help you explain fund approaches to clients.
- Connect to values. The UN Sustainable Development Goals (SDGs), adopted in the same year as the Paris Agreement, provide a visual, structured framework that may be useful when discussing client values and mapping portfolios to real-world issues.
COP is a signal. It shows where governments, regulators, investors and clients are heading. For advisers, engaging with it is not about following headlines, but understanding the frameworks that shape capital flows, risks and opportunities. In short, COP has everything to do with financial advice.
Elly Dowding and Lee Coates OBE are the directors at ESG Accord and the Accord Initiative
