The Covid-19 pandemic could be a “springboard” for faster reductions in carbon emissions and investments in clean technology need to be more ambitious in their scope, the head of sustainable investments at Schroders has said.

Andy Howard, global head of Sustainable Investment at the British fund manager, issued on Thursday a note in response to the publication on Monday of the Intergovernmental Panel on Climate Change’s (IPCC) latest report on climate change.

Howard suggested there were few surprises in the Panel’s sixth report, adding: “The latest IPCC report underlines the scale of the challenge ahead and adds impetus to political action and social pressure, but doesn’t change the destination toward which we are heading.”

He suggests that “more physical damage is unavoidable” but the difference between a 1.5C (the best-case scenario) and a 4C increase (the likely rise if current emissions levels continue) is stark.

Howard added: “The Covid crisis may provide the springboard needed. 2020 is the only year global emissions have fallen anywhere close to the pace we will need to sustain, by 6%, although even that decline appears to have been at least partially temporary.”

Schroders believes that technology has a vital role to play in driving down emissions and this is underlined by the fact that governments have pledged some $2 trillion (£1.44 trillion) in green infrastructure spending over the next decade.

But Howard feels these projects could go further: “Investment in clean technologies and new growth products is similarly rising, but too often remains siloed in discrete product categories rather than targeting wholesale redesign of their entire product range.”

A report published on Monday by research house Cerulli found hedge fund managers are largely ignoring environmental, social and governance (ESG) factors in their investments despite overwhelming demand from their clients.

A report by Manulife Investment Management concluded last month that emerging markets including those in Asia offer some of the best ESG investment opportunities.