Weekly media briefing 21 October 2021

This week’s topics: 

• Few countries make net zero progress despite Covid cutting emissions - PwC’s Net Zero Economy Index

• London regains top spot for European IPOs amid strongest Q3 in recent history

• PwC’s 2021 Law Firms Survey - UK legal firms are confident about the post-pandemic climate

Few countries make net zero progress despite Covid cutting emissions - PwC’s Net Zero Economy Index

The report, now in its 11th year, tracks the decarbonisation of energy-related CO2 emissions worldwide and estimates the rate of global decarbonisation needed to deliver a 1.5°C aligned net zero world by 2050.

Findings include:

• The world needs to cut energy-related carbon intensity five times faster to hit the 1.5°C Paris Agreement target - that’s a decarbonisation rate of 12.9% per year

• Few countries make net zero progress despite Covid cutting emissions 

• No country in the G20 was able to achieve the 12.9% rate of decarbonisation required to limit warming to 1.5°C

• In 2020, due to the impact of Covid, energy demand fell by 4.3%, leading to a reduction in energy-related emissions of 5.6% (from 2019 levels) and a fall in total global emissions

• The UK achieved a 6.5% rate of decarbonisation in 2020

• Despite the rise in ambition, the emission gap continues to widen - it’s imperative we see more decisive action from world leaders and businesses this decade to keep the Paris Agreement goals on the table and achieve net zero by mid-century.

Kiran Sura, Assistant Director in PwC’s Sustainability & Climate Change practice, said:

• Although some of the stimulus to help economies recover from Covid has targeted a green recovery - such as measures to improve energy efficiency, the uptake of electric vehicles and investment in green infrastructure - the opportunity has largely been missed. 

• The response fails to match the scale and urgency of the climate crisis. We are already seeing a sharp rebound in emissions as things return to business-as-usual in a decade where aggressive reductions are needed to keep the 1.5°C goal alive.

For more information, please visit the PwC Media Centre.

London regains top spot for European IPOs amid strongest Q3 in recent history

The latest edition of PwC’s quarterly IPO Watch Europe report was released this week. Its key findings include:

• London’s IPO market delivered one of the strongest third quarters in recent history with £3.9bn of issuance 

• AIM records fifth consecutive quarter of growth, seeing £1.1bn of issuance as London Stock Exchange remains the dominant European exchange 

• Strong Q3 activity contributes to continued robust European IPO activity in year to date, with 287 IPOs raising €55.4bn (compared to 64 IPOs raising €11.7bn in the same period last year)

• Investors focus on aftermarket performance, quality of issuers, governance and ESG agenda. 

Mark Hughes, UK Capital Markets Leader at PwC, said:

• This has been another strong quarter for European IPO activity with the strongest Q3 we have seen in recent years. This is despite both the traditional summer slowdown in activity, as well as some market volatility driven by macroeconomic concerns as major economies continue an uneven recovery from lockdown.

• Yet there are signs, after a remarkable first half of the year, that this is very much a buyer’s market with high levels of selectivity and price sensitivity. Investors are paying particularly close attention to valuation and aftermarket performance. A high quality investment story underpinned by a robust set of KPIs, strong governance and properly planned IPO process, will be of paramount importance in realising value in the months ahead.

For more information, please visit the PwC Media Centre.

PwC’s 2021 Law Firms Survey - UK legal firms are confident about the post-pandemic climate

PwC’s 30th Law Firms’ Survey reveals that the UK’s top 100 law firms are facing the future with confidence, having embraced operational and market changes to record positive financial results. The survey reveals trends and financial results from the past year, which saw 76% of the top 100 firms post an increase in profit. 

Kate Wolstenholme, PwC’s Law Firms’ advisory leader, explains some of the key findings and trends:

• These are fast-moving and exciting times for UK law firms as they continue to adapt to operating flexibly in a post-pandemic climate. Law firms have experienced significant disruption over the last 18 months and most have been agile in fast-tracking changes in their working culture. 

• Our analysis shows that 2020’s pessimism across the legal sector has shifted to optimism, with 97% of the top 100 UK firms outperforming their revenue and profit expectations in 2021.

• In addition to this, 74% of the top 100 UK firms reported an increase in fee income. 

• 90% view cyber risk as a threat to future growth ambitions.

• With the majority of firms expecting staff to be in the office 40-60% of the time, almost half of the top 100 expect to reduce their office footprint, with 87% expecting to reconfigure office spaces.

• As we move forward, we will see how law firms best respond to challenges, both old and new, such as adopting hybrid working in a way that retains talent, capitalising on investment in technology, and delivering on ESG promises including diversity and inclusion targets, climate related goals, and social responsibility.

For more information, please visit the PwC Media Centre.

Something to listen to: 

Armoghan Mohammed, PwC's Regional Chair for the North, is in conversation with 'leading lights' from across the region, from business leaders to politicians. In this episode he speaks to Helen Tse MBE, a lawyer, restaurateur and successful author. Helen talks about her early life as first-generation Chinese, growing up in Manchester, the two things that keep her going - her passion for food and the family business, Sweet Mandarin - and her work as a lawyer.

Something to read: 

UK hotel trading performance is set to grow in 2022 but the speed of recovery remains uncertain and, although there are green shoots of recovery, trading is not anticipated to return to pre-pandemic levels by the end of 2022. Read the latest UK Hotels Forecast 2021-22 to find out how the speed of recovery will be driven by factors outside of the sector’s control, such as the pace and size of the return of tourism, international and domestic business, and events.

Something to watch:

Monday was World Menopause Day, designed to raise awareness of the menopause and the support options available for improving health and wellbeing. PwC Chairman and Senior Partner Kevin Ellis, Sarah Churchman, PwC’s UK Head of Diversity, Inclusion & Wellbeing, and members of the PwC Menopause Matters community featured in a video broadcast by ITN. 

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 155 countries with over 284,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

© 2021 PwC. All rights reserved