Let us remind ourselves again of the words of the Stern Review; those that said the business of the future will take climate change into account, to avoid the risks of feeding it further, but even more, to profit from it by investing in better technologies. A strong business message to the entrepreneurial minds, it seems, but does it show in investment behaviour from the institutional investors like your pension fund? Not really. Rather the opposite, in fact, says a UK study.
Very interesting in the report is that the investors do not trust the information they get from the companies such as the CSR (Corporate Social Responsibility) reports. They are more regarded as a way to "get the green fraternity off their backs"! The investors are asking for more government involvement to secure better and more valid information from the companies.
Admittedly, there are also methodological problems in assessing the risks. Many financial advisors have focused on the problem, and certainly not all of them have (yet) found out what it all is about. An interesting study from SCI in Switzerland, which aims to detect the risks of carbon exposure, could serve as an illustration and inspiration.Log in to post comments