30
Jun
Flash – Alternative Energy – Carbon risks
Factoring in carbon risks, now’s the time!
Key points
- Once again, 2016 set new records in terms of temperature anomalies: +1°C compared to the 1951-1980 average
- Let us recall the COP 21 goals: to keep the global temperature rise ‘well below +2°C’ and ‘to drive efforts to limit the temperature increase to +1.5°C’
- An increasing number of investors are measuring the carbon impact of their portfolio, a necessary first step
- Often misunderstood, ‘carbon risks’ are actually financial risks for companies in the fossil fuels sector, which in the long term could involve capital loss risks for equity portfolios
- Taking a retroactive approach by reporting on carbon impact is not sufficient: Investors should seek to reduce their exposure to carbon risks in their long-term strategies
- BBGI Group is a pioneer in Switzerland, launching its BBGI-oekom Low Carbon Risk indices for investors, providing a suitable comparison tool for the international equities “low carbon” segment
