Climate change

Climate change is the highest priority ESG issue facing investors. The PRI is working to help investors protect portfolios from risks and to expose them to opportunities in the shift to a low-carbon global economy. To hear more about our climate change work, contact us.

Transition risk for oil and companies

Potential production pathway

Scenario analysis – degrees of warming

Scenarios are often misrepresented. Ultimately they are one version of the future, not a prediction or forecast.

Oil carbon supply cost curve

Calculating carbon supply cost curves in a 2°C scenario

In order to try and allocate the carbon budget at a company level, Carbon Tracker developed the carbon supply cost curve approach.

Projected capex under 2D scenario

Calculating a 2°C capex pathway for oil and gas companies

Having calculated the oil and gas production associated with a 2D scenario, we can then identify the level of capital expenditure required, and the delta to business-as-usual, (BAU).

Oil and gas company/project exposure to a 2°C scenario

Companies that have a lower percentage of unneeded capex can be seen as more aligned with a 2D budget; companies with a greater percentage of unneeded capex warrant further attention from investors.

NPV sensitivity to oil price

NPV sensitivity of oil and gas companies to a 2°C scenario

The NPVs of a company’s 2D-compliant portfolio and its BAU portfolio can be compared to give an insight into the cost structures of the two and their relative values.

Task Force on Climate-related Financial Disclosures (TCFD)

A guide on climate change for private equity investors

A guide on climate change for private equity investors

Questions that LPs can ask their GPs, and that GPs can ask current or potential portfolio companies, to assess climate change impacts on private equity investments.

Sustainable real estate investment: Implementing the Paris Climate agreement - an action framework

Sustainable real estate investment: Implementing the Paris Climate agreement

Identify key drivers and overcome the most common barriers to action for integrating ESG and climate change risks into real estate investments.

Climate disclosure – what does this year’s ExxonMobil resolution tell us?

Examining climate disclosure through an in-depth look at the upcoming ExxonMobil climate disclosure resolution.

Long walk to below 2 degrees - reflections on COP22

Canny investors recognise the need to understand climate risk and protect investments.

Asset owner climate change strategy

Reducing emissions across the portfolio cover

Reducing emissions across the portfolio

A growing number of asset owners want to know how their assets are exposed to climate change related risks, and the role that they can play in an orderly transition to a lower carbon economy.

Three steps to develop a climate change strategy

Developing an asset owner climate change strategy

There is a growing imperative for asset owners to align their investment portfolios with a low-carbon economy.