Australia is catching up on climate investment risk.
Written March 2015 by Darren Willman. Written for and published by Climate Spectator (Australia).
Last week, in anticipation of the United Nations Principles for Responsible Investment “roadshow” in Australia, I published an article in Climate Spectator.
The article summarises the investment carbon risk measures taken by major international groups and coalitions through the second-half of 2014. It then goes through what these risks are, the main investment risks associated with carbon are stranded assets, litigation risk, regulatory risk and reputational risk. Finally, I go through the basic approaches to managing these risks: understanding the risks, diversifying, and/or divesting.
As this week’s events and conferences will demonstrate, the ESG and sustainability people are all over the responsible investment movement. But when it comes to the Chief Investment Officers and Fund Managers it is a different story. As I wrote in my article:
One of the main roadblocks has been the availability and quality of solutions. But these are rapidly improving – online screening and reporting tools, data feed integration services and solutions, portfolio analysis work and forward-looking impact assessment consulting work – offered by organisations in the responsible investment space such as South Pole Group. With these solutions now increasingly available, hopefully Australia’s finance and investment sector does not become stranded itself, and can follow the rest of the world in this burgeoning trend.
Please enjoy the original article: http://www.businessspectator.com.au/article/2015/3/18/energy-markets/australia-catching-climate-investment-risk