Climate Change

Climate Change “Demand for coal has been falling in key markets. Climate policy and economic changes in Asia mean this trend could soon become permanent. Analysts tell us that demand for oil could weaken too before long,” said Craig Mackenzie, Head of Sustainability at Scottish Widows Investment Partnership, one of Europe’s largest asset management companies. “Companies must plan properly for the risk of falling demand by stress-testing new investments to minimize the risk our clients’ capital is wasted on non-performing projects.” “We have a fiduciary duty to ensure that companies we invest in are fully addressing the risks that climate change poses,” said Anne Stausboll, CEO of the California Public Employees Retirement System (CalPERS) and co-chair of the Ceres board of directors. “We need robust long-term strategies that reflect the reality we face. This is using science and evidence to underpin the economics. We cannot invest in a climate catastrophe.” “Fossil fuel companies are the biggest sources of carbon pollution by far, which means they are also uniquely positioned to lead the world in responding to global climate risks,” added Ceres president Mindy Lubber, speaking during a call with reporters today. As of October 23, investors had received preliminary responses from 30 companies. Detailed answers to the investors’ questions will come in follow-up responses. Participating investors are asking their peers to support this effort. "Many of the responses investors have received from the companies thus far acknowledge that there is a legitimate risk issue around carbon reserves, and companies are open to continued engagement from the investor community to determine the scope,” said Mark Fulton, a member of the Carbon Tracker’s Advisory Board and a Ceres adviser. “Fossil fuel companies will prove to be more responsible stewards of capital in the future if they take action now to manage the risks posed by climate change.”   For more information on carbon asset risk, visit www.carbontracker.org.