Carbon Tracker Initiative
In April 2013, the Carbon Tracker Initiative alerted the financial world that $674 billion is invested annually in what might prove to be “unburnable” fossil fuel assets leading to potentially stranded assets. In May 2014, a new research series will be launched, which identifies the highest carbon content highest priced assets with potential for future development, mapping company exposure to these assets. Mark Campanale will outline findings of a new report, Carbon Supply Cost Curves: Evaluating Financial Risk to Oil Capital Expenditure. This report extends the notion of a carbon budget to market realities. Find out more about Carbon Tracker.
Institutional Investors Group on Climate Change (IIGCC)
The Institutional Investors Group on Climate Change is a network of over 90 members, including some of the largest pension funds and asset managers in Europe. IIGCC provides investors with the collaborative platform to encourage public policies, investment practices and corporate behaviour that address long-term risks and opportunities associated with climate change. Through IIGCC’s Corporate Programme, members have met with all the main European oil, gas and mining companies spelling out a common message of what investors expect from companies on capital discipline, executive remuneration as well transparency on fossil fuel demand assumptions and carbon price scenarios. Craig Mackenzie will highlight findings and next steps for IIGCC’s collaborative engagement. Find out more about IIGCC.
Ceres and the Investor Network on Climate Risk, which it coordinates, have been working with investors and companies for over a decade on the business and investment risks associated with climate change. Ceres also supports investors in their engagements with portfolio companies on climate-related risks. Investor concerns about “stranded asset” risks to investors affecting the valuation of fossil energy companies and their carbon reserves under reduced demand scenarios led to the launch in September 2013 of the Carbon Asset Risk initiative, in which more than 70 global investors sent letters to 45 of the world’s largest oil and gas, coal and electric power companies, asking them to assess and report on this risks and impacts to their businesses of low carbon scenarios and physical impacts of climate change. Ryan Salmon will discuss the progress of this initiative, engagements to date, related shareholder proposals and next steps in addressing this issue. Find out more about Ceres.
Principles for Responsible Investment (PRI)
The United Nations-supported Principles for Responsible Investment Initiative (PRI) is a network of international investors working together to put the six Principles for Responsible Investment into practice. The Principles were devised by the investment community. They reflect the view that environmental, social and corporate governance (ESG) issues can affect the performance of investment portfolios and therefore must be given appropriate consideration by investors if they are to fulfil their fiduciary (or equivalent) duty. The Principles provide a voluntary framework by which all investors can incorporate ESG issues into their decision-making and ownership practices and so better align their objectives with those of society at large. Find out more about the Principles for Responsible Investment (PRI).