According to Dr Aled Jones, Director of Anglia Ruskin University’s Global Sustainability Institute in Cambridge. The pensions of many British workers are being put at risk by the City’s over reliance on high carbon investments, “The depth and breadth of our collective financial exposure to high carbon, extractive and environmentally unsustainable investments could become a major problem which affects all of us,” said Dr Jones. He chairs a working group for the Capital Markets Climate Initiative, a public-private initiative set up by Greg Barker MP, Minister at the UK Department for Energy and Climate Change.
“In both the FTSE 100 and the French CAC 40, two of the largest stock market indices in the EU, specialised oil and gas companies alone make up approximately 20 per cent of market capitalization; “To date investors have considered carbon constraints as something which will occur far in the future, and are therefore not material to asset valuation or portfolio management. This is no longer true.“The European Union Energy Commissioner has suggested that the EU will fix a new and stronger 2030 carbon target – and potentially a new renewable energy target – in the next two years.”
“These imminent policy decisions will impact on the value of all high carbon investments by placing absolute limits to the use of fossil fuels inside the EU and globally. As policy and technology over time reduce returns in high carbon areas while supporting low carbon ones, investing in high carbon sectors could result in stranded assets and poor returns.”
Climate change skeptic or not Enable IFA’s can review your investment exposure to high carbon areas.
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