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Adapting Portfolios to Climate Change | BlackRock

Implications and strategies for all investors

Investors can no longer ignore climate change. Some may question the science behind it, but all are faced with a swelling tide of climate-related regulations and technological disruption. Drawing on the insights of BlackRock’s investment professionals, we detail how investors can mitigate climate risks, exploit opportunities or have a positive impact. Climate-aware investing is possible without compromising on traditional goals of maximising investment returns, we conclude. We then reflect on steps that stakeholders in the climate debate are considering, including the use of carbon pricing as a cost-effective way to reduce emissions. Our overall conclusion: We believe all investors should incorporate climate change awareness into their investment processes. Read more

Business leaders heed warning on climate change risks | The Australian

The nation’s top regulators, legal experts and leading company ­directors have backed a warning to listed company boards to factor climate-related business risks into their decision-making or risk breaching their duties under the Corporations Act. At a recent private meeting in Melbourne, more than 30 senior business leaders, fund managers, legal experts and regulators gathered to consider a new legal opinion by Noel Hutley SC on how corporate law requires company directors to consider and respond to climate-related risks to business.

 

SEC’s Exxon Probe: the ‘Tipping Point’ for Oil & Gas Climate Change Accounting? | Environmental Leader

ExxonMobil’s climate change accounting is under investigation by the US Securities and Exchange Commission — and this could have major implications for the oil and gas industry, the Wall Street Journal reports.

The SEC probe is focusing on how Exxon calculates its business risk from climate change, including the figures it uses to project future costs of complying with emissions regulations.