In the UK, advances are being made on power sector emission reductions, with 75pc of reductions since 2012 coming from this sector. However, other sectors, most notably transport, agriculture and the emissions from our homes and industry, are off track. While greater clarity is urgently needed from the Government on how it will help accelerate the UK’s transition to a low-carbon economy, it is not just up to governments to act. Consumers, businesses and investors also have a responsibility – the problem is that while the roles of each remain blurred, action stalls. A small number of investors are already aware and acting through integrating environmental, social and governance (ESG)-related risks as well as stewardship into their investment processes and decisions. Doing this gives them the ability to generate holistic returns – financial outcomes for beneficiaries, alongside positive externalities for society and the environment – the integration of such information is indispensable. Moreover, by doing so, they become a truly long-term oriented investor. However, this approach is far from the norm. This must change. Today, there is near global consensus on the need to act with urgency to stop runaway climate change, as set out in the 2015 Paris Agreement. This will translate into a regulatory reality for investors that must abide by EU rules. For investors, climate change is different to other ESG risks. If not addressed, those companies who fail to transition put the value of their investments exposed to carbon at risk, as well as the value across the wider portfolio as increasingly extreme weather events affect supply chains and destroy physical assets. In 2010, floods in Thailand affected two thirds of the country, causing more than 230 deaths and disrupting supply chains in the region. This caused months of disruption, $2.2bn (£1.7bn) in insured losses and affected over 300 Japanese firms.
Telegraph 12th March 2019 read more »
Influential think tank calls on government to emulate Scotland and introduce Just Transition Commission for carbon intensive communities across Northern England. Calls for the UK government to deliver a ‘Just Transition’ that ensures workers in carbon intensive industries do not face unemployment and underinvestment as clean technologies emerge.
Business Green 12th March 2019 read more »