Sentences with phrase «carbon asset risk»

Moreover, while a focus on reporting of companies» carbon emissions is important, we suggest that improving reporting of and transparency around carbon asset risk — an on - going focus of the Bank of England — should be a priority for the Government.

We're going to extract every last drop and burn every last drop,»» said Andy Behar, president of California - based As You Sow, an advocacy group and co-sponsor of the carbon asset risk resolution.

excerpt: «After being pestered for years by shareholder activists, Exxon has agreed to produce a public document on its «carbon asset risk.»

Her 2014 landmark negotiation with Exxon Mobil led to the company's first public report on global warming and carbon asset risk.

«Given the amount of money you're spending on high - cost, high carbon projects... given your demand restraints due to carbon asset risks, we think a more prudent use of capital is to return more money to shareholders through dividends and share buybacks.»

Not exact matches

Furthermore, carbon - heavy industries are not immune from disruption, nor are asset prices from regulatory efforts to mitigate climate change risk.

On Friday November 21st Glass Lewis hosted a Proxy Talk conference call with CERES and Walden Asset Management to discuss the risks from stranded carbon assets, greenhouse gas emissions and hydraulic fracturing as well as trends in -LSB-...]

A small but growing number of countries now have legal requirements for institutional investors to report on how their investment policies and performance are affected by environmental factors, including South Africa and, prospectively, the EU.36 Concern about the risks of a «carbon bubble» — that highly valued fossil fuel assets and investments could be devalued or «stranded» under future, more stringent climate policies — prompted G20 Finance Ministers and Central Bank Governors in April 2015 to ask the Financial Stability Board in Basel to convene an inquiry into how the financial sector can take account of climate - related issues.37

It would have to reduce the risks of high - carbon assets while simultaneously scaling up capital for the low - carbon transition.

It also allows for a smoother reallocation of investment away from high - carbon towards low - carbon technologies and infrastructure, avoiding the risk of stranded assets and economic disruption.

It says investors that currently have high exposure to high - carbon assets are at risk of possessing «stranded assets» — a term used to describe financially worthless investment stocks.

This paper is designed to assist the TCFD members in assessing the «carbon bubble» concept and «stranded asset» risks inherent in the business - as - usual strategies of many fossil fuel companies.

The session will look at measuring asset owner exposure to CO ₂ — the methods, data challenges and uses associated with this, as well as how carbon footprints can be reduced without increasing investment risk or reducing returns.

Developing and implementing these strategies ensures alignment with the long - term goals of the Paris Agreement, in a way that fosters increased prosperity for citizens, reduces the risk of locking - in unsustainable and high - emission infrastructure, and will help to avoid stranded high - carbon assets.

This hedging strategy will buffer the impact an extreme carbon risk event might have on a portfolio while potentially capturing the upside of the transition away from fossil fuel assets.

Investors should tilt portfolios away from assets with embedded carbon risks and toward assets with low or no carbon emissions.

This can be achieved by, for example, considering the key drivers of a company's current and future asset base in the context of carbon risks and developing tools that quantify risks for valuations.

For the IEA, the extent to which risk exists from stranded assets depends on whether the low - carbon transition is orderly or disorderly — something Carbon Tracker frequently highlights as well.

The assertion of a carbon bubble in fossil fuel assets ultimately depends on investor ignorance of climate - response risks, presumably because companies haven't quantified those risks for them.

Given the strictures on shareholder proposals, it's common for investor advocates to push not for specific changes, but for analyses of risk: asking companies to publicly measure their greenhouse gas emissions, to analyze the environmental impact of their global supply chains, or, in a strategy pioneered last year, to quantify their exposure to «stranded assets,» such as fossil fuel reserves that would exceed the world carbon budget.

Investors with trillions of dollars under assets repeatedly have warned that all industries are exposed to both physical climate impact risks and risks that could arise from the low carbon transition as demand for carbon - intensive fuels and technologies declines and new markets emerge.

The new analysis is a clear signal that carbon assets pose a systemic risk to financial stability.

«But I hope this report will mean that regulators also take note, because much of the embedded risk from these potentially toxic carbon assets is not openly recognized through current reporting requirements.»

As the comparison to global coal budgets illustrate above, Australia will have a vast oversupply of coal assets in a carbon - constrained world, therefore running the risk of being left with significant stranded assets.

«Efforts to stay within a carbon budget, increase fuel efficiency, reduce costs and improve air quality mean that if capital continues to flow into oil sands, the projects risk becoming stranded assets», says Carbon Tracker's research director, James Leaton.

Through pioneering analysis into the «carbon bubble» and «stranded assets», Carbon Tracker investigates the financial risks faced by high - carbon investments in the face of a rapid energy transition.

«This «unburnable carbon» is likely to become an increasing risk in the medium to long term, especially for companies heavily invested in thermal coal, or those seeking to develop new long - term assets,» Corboy said in a statement.

The capital needed for a global shift to low - carbon energy systems can be mobilized from highly liquid but risk - averse institutional investors, such as pension funds, insurance companies, and sovereign wealth funds, which have assets of more than $ 80 trillion.

Further analysis has identified the fossil fuel reserves and resources at risk of becoming economically «stranded assets» due to a low - carbon energy transition.

Sir Nicholas Stern to join IDEAGlobal Group as Vice Chairmanam Such expertise, will fit well with the broad - ranging economics and analysis conducted by IDEAglobal and also with the aims of IDEAcarbon, recently launched to provide market analysis and rate any asset with carbon collateral providing a standard risk measure for participants in this rapidly growing sector.

«There is a risk that focusing on «stranded assets» or the concept of the «carbon bubble» distracts attention away for the reality of a growing population, increasing prosperity and growing energy demand.»

This has fed into their thinking on assessing the «carbon bubble» and «stranded asset» risks of fossil fuel companies.

This report calls for carbon emissions levels to be considered against expected revenues to better identify assets potentially at risk of impairment.

His mandate is to develop the organization's capabilities in North America, building awareness and understanding of carbon and stranded asset risk amongst institutional investors and broadening the distribution and usage of Carbon Tracker's proprietary research.

One of those potential risks with severe financial consequences is the concept of stranded assets, which has become particularly intertwined with yet - unused carbon assets and fossil fuels.

The Alberta government could see to it that the energy producers refined the stuff into synthetic crude oil on site but this is a high - cost, high - carbon asset already at some risk of becoming «stranded.»

Yet, whether these assets will become stranded or actually will lead to carbon bubble, the risk increasingly has garnered attention from news outlets such as the BBC, the Financial Times and The Economist.

But as leaders are becoming increasingly wary of their carbon output, how much attention will be paid to the emerging risk of fossil fuel's stranded assets?

While North America's largest oil and gas company did announce for the first time that climate change is a reality, the company does not mention the potential risks of a carbon asset bubble.

For more information about carbon risk to your portfolio see the Stranded Assets page.

As the discourse around climate risk, the «carbon bubble,» and «stranded assets» moves into the mainstream of finance, coupled with the competitive returns of fossil free investing, campaigners have a robust set of resources to dismantle informational barriers like fiduciary duty and the cost of divestment.

And all this brings increasing recognition by investors that the carbon bubble and stranded assets are serious financial risks, which in turn reinforces the growing power of NGO campaigns against coal and CSG along with their fossil fuel divestment campaign.

«Investments with more carbon translate to higher risk, not just from potential carbon fees or pricing, but also from shifts in technology that can leave high carbon assets stranded,» said Erik Solheim, Head of UN Environment.

Timing is really the only key unknown with climate risk because any dispassionate investor knows that carbon exposed assets, particularly coal companies, will drop in value at some point.

Of course if governments can off load carbon - exposed assets to investors that's good news for taxpayers, but it's bad news for investors who don't take account of carbon risk.

It contains a number of tropes that may be familiar to the well - versed in oil and gas climate disclosures — for example narrowing the scope of stranded assets, and characterising the energy sector impacts of a low carbon transition as gradual and well - signposted, thereby depriving investors of an assessment of the volumes and capex at risk should the company misread the pace of the transition.

An unrealistic reliance on untested carbon capture and storage (CCS) technology risks leaving the companies with huge stranded assets in the future, as international climate change regulations are strengthened at Copenhagen next year.

Most recently, a report from The Carbon Tracker with a forward by Lord Stern of the Grantham Research Institute on Climate Change (London School of Economics), argued that serious risks are accumulating for investors in high carbon assets, such as coal mining companies and the oil and gas industry.

Financial incentives that shift the risk reward balance in favour of low - carbon assets.

On the risk side, divesting is about not getting stuck holding stranded fossil fuel assets that can not be burnt if the world is to adhere to a given carbon budget, a topic on which Mark Carney, governor of the Bank of England, has expressed concerns in a landmark speech to global insurer Lloyd's of London.