Ceres and the Institutional Investors Group on Climate Change (IIGCC) press conference on Beyond Paris and the US elections: investor perspectives. It highlighted that climate change is viewed by many businesses as both a risk and an opportunity.
Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts
Saturday, November 12, 2016
Investor perspectives on beyond Paris and the US election at #COP22
Ceres and the Institutional Investors Group on Climate Change (IIGCC) press conference on Beyond Paris and the US elections: investor perspectives. It highlighted that climate change is viewed by many businesses as both a risk and an opportunity.
Wednesday, May 4, 2016
Dirty secret revealed at EngieGroup AGM: #Hazelwood
A live question was asked at the Engie Group General Assembly (AGM) in France about the Hazelwood Power station in the LaTrobe Valley of Australia, Engie's dirty secret. Engie say they will only generate low or no carbon electricity, but Hazelwood and plans to upgrade the turbines at Loy Yang B power station proves that this talk is just greenwashing.
Engie needs to show corporate responsibility in settling the claim for costs for putting out the 45 day 2014 mine fire. They should be building renewables and planning the phased closure of Hazelwood and Loy Yang B power stations and rehabilitation of the coal mines. They need to consult and negotiate with the LaTrobe Valley and Morwell community about employment, energy and mine rehabilitation for a just transition.
Engie, more widely kknown as GDF Suez, is a majority owner along with Japanese company Mitsui of two coal mines and power stations in Victoria. The subsidiary company, International Power, runs the Hazelwood and Loy Yang B power stations. Yet Engie has just announced that it hopes to spend ‘tens of millions’ of dollars to upgrade the turbines in the Loy Yang B power station.
Tuesday, October 7, 2014
Divestment: Local Government Super add negative filter for coal
Local Government Super, an industry superannuation fund covering local government workers in NSW, has announced increased negative screening for high carbon assets such as coal mining and coal power generators, specifically citing the impact of climate change for this decision.
The additional negative screening will exclude companies from its portfolio with a material exposure to ‘high carbon sensitive’ activities such as coal and tar sands mining, as well as coal-fired electricity generators. The threshold for this screening has been set at a minimum of one third of company revenue.
The Super fund has used negative screening since 2000 regularly reviewing this policy and it's application. The policy has limited investment with companies involved with tobacco, gambling, armaments and old growth forests, as well as excluding companies with poor management of environment, social and governance (ESG) risks.
Local Government Super has about $8 billion in investments. The policy will mean about $25 million will be divested from various mining and energy companies, including $15 million in shares of AGL Energy and Whitehaven Coal.
Sunday, September 7, 2014
Your Superannuation is Destroying the Planet - John Hewson fights back on climate
Superannuation for most of us is compulsory saving that we really don't worry too much about until we start getting closer to retirement. We leave it to the investment managers and superannuation trustees to judge the benefits and risks in investment strategies they put forward.
But what if their assessments of risk and investment strategies are all short term market oriented or only consider past trends. This is the problem posed by climate risk and the carbon bubble. The carbon bubble represents a major shift in resource exploitation and energy production, and a social and technological transition required. Australia's headlong rush for coal expansion risks stranded assets. The economic risks of a carbon bubble and stranded assets have been warned by Carbon Tracker, PriceWaterhouseCoopers (PwC) and International Energy Agency (IEA).
Global pension funds control about $30 trillion in assets. It is estimated that over 55 per cent of pension contributions are invested in high-risk, high-carbon assets with less than 2 per cent being invested in low-carbon assets.
With climate change science indicating that 80 per cent of known fossil fuel reserves need to be left in the ground to maintain a safe climate, there is an enormous carbon bubble of overvalued assets. This poses a huge problem: when this carbon bubble bursts it will substantially downgrade the value of these superannuation investments, that is, your and my future retirement income.
Monday, January 14, 2013
Time to cease expansion of coal to reduce climate change says Ad
More and more people are speaking up on the cost of coal expansion to the climate and biodiversity of the planet. Development of new coal mines, new coal export terminals and growing Coal exports are being done with the support of State and Federal Governments. Yet this is at the expense of and driving climate change producing more intense extreme weather events such as floods, droughts, storms, and bushfires. Coal exports are Australia's biggest contribution to climate change. They need to stop.
Read Melbourne University Associate Professor Peter Christoff's article on Why Australia must stop exporting coal. Or watch this 2010 lecture by Dr. Guy Pearse from the University of Queensland on Queensland's coal addiction.
The full text of the ad says:
Sunday, January 17, 2010
Greenwash: Investors push Governments for Cap and Trade Action
Australian, European and U.S. investor groups representing $13 trillion in assets said in a statement issued at a meeting at the UN in New York on Thursday "we cannot wait for a global treaty," They called on the U.S. Congress and other global decision-makers "to take rapid action" on carbon emission limits, energy efficiency, renewable energy, financing mechanisms and other policies that will accelerate clean energy investment and job creation.
Why the strong push from the Investment sector for Government Climate Action? It could be just altruism. But, as always the devil is in the detail. In this case, the push is for carbon trading - Emissions Trading Schemes like Kevin Rudd's Carbon Pollution Reduction Scheme (CPRS), often referred to as Cap and Trade.
I can understand that these people want the Government to set the rules for climate action and reducing carbon use - this gives the market predictability and stability for basing investment decisions on. But these same people have a vested interest in another financial market - the carbon market. It's another way for them to make money. All well and good, except if it fails, so does the prospects for avoiding dangerous climate change.
The meeting was the Investor Summit on Climate Risk, a meeting of 450 global investors at the United Nations that included UN Secretary General Ban Ki-Moon, United States Special Envoy for Climate Change Todd Stern, billionaire investor George Soros, and former Vice President Al Gore.
Australia was represented at the meeting by the Investor Group on Climate Change (IGCC) which represents investors of over $500bn across all sectors of the Australian economy, including many retail and industry superannuation funds.
The meeting called for a legally-binding climate agreement this year with comprehensive long-term measures for mitigation, forest protection, adaptation, finance, and technology transfer, including a global emission reduction target of 50-85% by 2050, consistent with estimates from the Intergovernmental Panel on Climate Change.
"Investors are poised and ready to scale up investments in building the low carbon economy, but without policies that create a stable investment environment our hands are tied," said Anne Stausboll, chief executive officer of the California Public Employees Retirement System (CalPERS), one of larghe largest public pension funds in the USA with more than $205 billion in assets. "U.S. leadership is critical in this regard, including U.S. Senate action to limit and put a price on carbon emissions."
"What investors need most from national and state legislatures are transparency, longevity and certainty," said Kevin Parker, global head of Deutsche Asset Management and member of Deutsche Bank's Group Executive Committee. "Until the U.S. Congress passes climate regulation, America will be at a competitive disadvantage in the development of renewable energy and other climate change industries."
Al Gore, in his speech, drew upon a report that Investment Managers Still Lagging in Response to Climate Change Risks and Opportunities, pointed out that the vast majority of the world's largest investment managers are not factoring climate-related trends into their short- and long-term investment decision-making,
On emission reductions, the statement said "We call on developed countries to establish emission reduction targets of 80-95% by 2050, with interim targets of 25-40% by 2020. Developing countries should have clear action plans that deliver measurable and verifiable emission reductions compared to projected levels."
The statement called for "national regulators worldwide, including the U.S. Securities and Exchange Commission, to require companies to disclose to their investors material climate-related risks and the programs in place to manage those risks."
Excellent stuff! But keep in mind most of the people at this summit are part of the financial and investment establishment. They have a vested interest in market based policies to establish a carbon price - in the Cap and Trade Emissions Trading Systems in place in Europe and proposed for the USA and Australia.
Their statement calls for "governments to put in place market-based policies to establish a carbon price that will signal that investments in carbon-intensive projects may yield lower returns, that new and established zero- or low-carbon technologies can be deployed profitably, and that investment in clean energy infrastructure will yield sound returns."
They "call on governments to support robust, transparent, well-governed markets that include mechanisms for directing private financial flows to low-carbon development in developed and developing countries."
Yet an emissions trading system has great dangers of rorting and not sufficiently encouraging investment to low carbon or carbon neutral projects. Stopping government fossil fuel subsidies should be a major priority, and placing a tax on carbon where it is produced, with subsidies to low carbon alternatives and dividends to the population should be considered.
Friends of the Earth UK prepared a report on carbon trading in November 2009 - 'A Dangerous Obsession (PDF)' - in which they outline that carbon trading could be the next 'sub-prime' crisis.
'A Dangerous Obsession' focuses on the buying and selling of a new artificial commodity - the right to emit carbon dioxide - which the UK and other developed country governments want to see expanded into a massive worldwide market.
According to FoE UK the trade in carbon permits and credits, mainly based in Europe, was worth $126 billion in 2008 and is predicted to balloon to $3.1 trillion by 2020 if a global carbon market takes off.
Releasing the report in November Friends of the Earth's international climate campaigner and author of the report Sarah Jayne-Clifton said: "Pushing a world carbon market as part of a global agreement to tackle climate change risks a double whammy of financial and environmental disaster.
"Carbon trading is failing dismally at reducing emissions, yet allows speculators to grow rich from the climate crisis and hands politicians and industry a get-out clause for polluting business as usual.
"Science tells us rich countries must act first and fast to cut their emissions at home if we are to avert climate catastrophe - and support poorer countries with adequate public money to grow cleanly and adapt to the effects of climate change which they are already feeling.
"The credit crunch has taught us that Governments, not markets are best placed to safeguard our future - at this critical point in the fight against climate change Ministers must step in and lead the way with a new, direct approach to tackling carbon emissions to create a safe and green future for us all."
So what will Australia's CPRS do? Emissions won't begin to fall until 2033, according to Treasury modelling. And the reason they will fall then is the 'predicted' introduction of 'clean coal' technology and import carbon permits from developing countries. Sounds pretty shonky to me. Climate greenwash!
Background
Takver is a citizen journalist from Melbourne who has been writing on Climate Change issues and protests including Rising Sea Level, Ocean acidification, Environmental and social Impacts since 2004.
Why the strong push from the Investment sector for Government Climate Action? It could be just altruism. But, as always the devil is in the detail. In this case, the push is for carbon trading - Emissions Trading Schemes like Kevin Rudd's Carbon Pollution Reduction Scheme (CPRS), often referred to as Cap and Trade.
I can understand that these people want the Government to set the rules for climate action and reducing carbon use - this gives the market predictability and stability for basing investment decisions on. But these same people have a vested interest in another financial market - the carbon market. It's another way for them to make money. All well and good, except if it fails, so does the prospects for avoiding dangerous climate change.
The meeting was the Investor Summit on Climate Risk, a meeting of 450 global investors at the United Nations that included UN Secretary General Ban Ki-Moon, United States Special Envoy for Climate Change Todd Stern, billionaire investor George Soros, and former Vice President Al Gore.
Australia was represented at the meeting by the Investor Group on Climate Change (IGCC) which represents investors of over $500bn across all sectors of the Australian economy, including many retail and industry superannuation funds.
The meeting called for a legally-binding climate agreement this year with comprehensive long-term measures for mitigation, forest protection, adaptation, finance, and technology transfer, including a global emission reduction target of 50-85% by 2050, consistent with estimates from the Intergovernmental Panel on Climate Change.
"Investors are poised and ready to scale up investments in building the low carbon economy, but without policies that create a stable investment environment our hands are tied," said Anne Stausboll, chief executive officer of the California Public Employees Retirement System (CalPERS), one of larghe largest public pension funds in the USA with more than $205 billion in assets. "U.S. leadership is critical in this regard, including U.S. Senate action to limit and put a price on carbon emissions."
"What investors need most from national and state legislatures are transparency, longevity and certainty," said Kevin Parker, global head of Deutsche Asset Management and member of Deutsche Bank's Group Executive Committee. "Until the U.S. Congress passes climate regulation, America will be at a competitive disadvantage in the development of renewable energy and other climate change industries."
Al Gore, in his speech, drew upon a report that Investment Managers Still Lagging in Response to Climate Change Risks and Opportunities, pointed out that the vast majority of the world's largest investment managers are not factoring climate-related trends into their short- and long-term investment decision-making,
On emission reductions, the statement said "We call on developed countries to establish emission reduction targets of 80-95% by 2050, with interim targets of 25-40% by 2020. Developing countries should have clear action plans that deliver measurable and verifiable emission reductions compared to projected levels."
The statement called for "national regulators worldwide, including the U.S. Securities and Exchange Commission, to require companies to disclose to their investors material climate-related risks and the programs in place to manage those risks."
Excellent stuff! But keep in mind most of the people at this summit are part of the financial and investment establishment. They have a vested interest in market based policies to establish a carbon price - in the Cap and Trade Emissions Trading Systems in place in Europe and proposed for the USA and Australia.
Their statement calls for "governments to put in place market-based policies to establish a carbon price that will signal that investments in carbon-intensive projects may yield lower returns, that new and established zero- or low-carbon technologies can be deployed profitably, and that investment in clean energy infrastructure will yield sound returns."
They "call on governments to support robust, transparent, well-governed markets that include mechanisms for directing private financial flows to low-carbon development in developed and developing countries."
Yet an emissions trading system has great dangers of rorting and not sufficiently encouraging investment to low carbon or carbon neutral projects. Stopping government fossil fuel subsidies should be a major priority, and placing a tax on carbon where it is produced, with subsidies to low carbon alternatives and dividends to the population should be considered.
Friends of the Earth UK prepared a report on carbon trading in November 2009 - 'A Dangerous Obsession (PDF)' - in which they outline that carbon trading could be the next 'sub-prime' crisis.
'A Dangerous Obsession' focuses on the buying and selling of a new artificial commodity - the right to emit carbon dioxide - which the UK and other developed country governments want to see expanded into a massive worldwide market.
According to FoE UK the trade in carbon permits and credits, mainly based in Europe, was worth $126 billion in 2008 and is predicted to balloon to $3.1 trillion by 2020 if a global carbon market takes off.
Releasing the report in November Friends of the Earth's international climate campaigner and author of the report Sarah Jayne-Clifton said: "Pushing a world carbon market as part of a global agreement to tackle climate change risks a double whammy of financial and environmental disaster.
"Carbon trading is failing dismally at reducing emissions, yet allows speculators to grow rich from the climate crisis and hands politicians and industry a get-out clause for polluting business as usual.
"Science tells us rich countries must act first and fast to cut their emissions at home if we are to avert climate catastrophe - and support poorer countries with adequate public money to grow cleanly and adapt to the effects of climate change which they are already feeling.
"The credit crunch has taught us that Governments, not markets are best placed to safeguard our future - at this critical point in the fight against climate change Ministers must step in and lead the way with a new, direct approach to tackling carbon emissions to create a safe and green future for us all."
So what will Australia's CPRS do? Emissions won't begin to fall until 2033, according to Treasury modelling. And the reason they will fall then is the 'predicted' introduction of 'clean coal' technology and import carbon permits from developing countries. Sounds pretty shonky to me. Climate greenwash!
Background
- Investor Network on Climate Risk, Jan 14, 2009 - Investors Representing $13 Trillion Call on U.S. and Other Countries to Move Quickly to Adopt Strong Climate Change Policies
- The Investor Statement on Catalyzing Investment in a Low-Carbon Economy (PDF). The Investor Statement was endorsed by four groups representing more than 190 investors. The groups are the Investor Network on Climate Risk (INCR), Institutional Investors Group on Climate Change (IIGCC), Investor Group on Climate Change (IGCC) and the United Nations Environment Programme Finance Initiative (UNEP FI).
- Investor Network on Climate Risk, Jan 6, 2009 - New Report: Investment Managers Still Lagging in Response to Climate Change Risks and Opportunities
- Friends of the Earth Australia Media Release, Nov 5, 2009 - carbon trading 'the next Sub Prime' - new report
Takver is a citizen journalist from Melbourne who has been writing on Climate Change issues and protests including Rising Sea Level, Ocean acidification, Environmental and social Impacts since 2004.
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