Analysts say that more than three-quarters of the world’s known coal, oil and gas reserves will have to stay in the ground if the planet is to have any chance of meeting the target to limit global warming to between 1.5C and 2C. Since fossil-fuel companies are valued on their reserves, leaving them in the ground is not best for profits and share prices. It is also likely that other heavy carbon producers such as energy providers, steel-makers and meat farmers will be affected by as hefty financial penalties.
But across the globe “carbon-intensive” companies are behaving as if it’s “business as usual”, when perhaps they should be telling investors some of the threats now facing them. This approach is completely untenable, say pension funds and law firms. “Business as usual is not an option for very carbon-intensive companies,” said Stephanie Maier, the head of responsible strategy and research at Aviva, who manage £267bn of investments. She also speaks for the Institutional Investors Group on Climate Change, a coalition of 120 financial institutions managing nearly £10trn of funds in nine countries. Perhaps we all need to reconsider what is going on behind the scenes and investigate big business preparations for a lower-carbon future.
Source: The Independent
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