News

Record number of investors support CDP’s 2010 request for climate change information

London, UK - 17 February 2010. The Carbon Disclosure Project (CDP) today announced its eighth annual request for information on greenhouse gas emissions and climate change strategies to over 4,500 companies globally. Companies this year will report to CDP through an upgraded system, developed with Accenture, Microsoft and SAP, that will for the first time utilise the full power of online analysis tools to drive improved carbon management.

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“Cannot Wait for a Global Treaty,” Investors Tell Congress and other Government Policymakers at United Nations Investors Climate Summit
 
NEW YORK CITY, NY — On the heels of international climate treaty talks in Copenhagen, the world’s largest investors today released a statement calling on the U.S. and other governments to move quickly to adopt strong national climate policies that will spur low-carbon investments to reduce emissions causing climate change. Private-sector investors will likely be responsible for financing more than 85 percent of the global transition to a low-carbon economy.

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Click here to download a copy of the investor statement

Key investor organisations, The Australian Council of Superannuation Investors (ACSI), and the Investor Group on Climate Change (IGCC), today said that the Copenhagen Accord has brought the prospect of substantial cuts to global emissions much closer and that Australian companies should now be preparing to significantly reduce their emissions.
 
The investor groups consider that the Copenhagen Accord sets a clear direction for emissions reductions globally, including a goal for a maximum of 2 degrees warming or 450ppm equivalent of greenhouse gases. Realisation of the Copenhagen Accord would require substantial cuts in Australian emissions by 2020.
 
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The Investor Group on Climate Change (IGCC), representing investors of over $500bn across all sectors of the Australian economy today restated its views on the importance of passage of the Carbon Pollution Reduction Scheme.

Investors need to be able to include carbon risks in their investment decisions and passage of the CPRS would allow this for the first time in Australia.

Delaying passage of the scheme yet again will hold up investment decisions and generate significant uncertainty in the business and investment sectors.

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The Investor Group on Climate Change (IGCC), representing investors of over $500bn across all sectors of the Australian economy, today released a statement of its position on areas of possible amendment to the Carbon Pollution Reduction Scheme (CPRS). The statement entitled, IGCC statement on areas of possible amendment to the CPRS accompanies this media release.

IGCC welcomes the Opposition’s contribution to resolving the CPRS, as establishment of an emissions trading framework in Australia is a critical step to enable a reduction in domestic emissions.

But IGCC warns the effectiveness of the CPRS in achieving least cost emissions reductions and equitably distributing costs through the economy are at risk under some of the proposals.

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Click here to download a copy of the IGCC statement on areas of possible amendment to the CPRS

Disclosure among ASX100 and NZ50 improves however investors call for detail on mitigation plans

ASX100 companies ranked fifth globally for their disclosure on emissions and climate change strategy, according to the results of the Carbon Disclosure Project 2009 (CDP) Australia and New Zealand, released today. Seventy-three per cent (73%) of ASX100 and 96% of ASX50 companies responded to this year’s CDP survey, compared to an overall global response rate of 55%.
 
The Investor Group on Climate Change (IGCC) believes that Australia and New Zealand companies have accepted that disclosure is essential and that the challenge for companies in 2010 is developing clear investment plans for transitioning to a low-carbon economy.
 
Nathan Fabian, CEO of IGCC says, “The response rate, for the larger Australian companies in particular, is positive when you consider the tough economic environment and the uncertainty around climate change regulation. The majority of companies appear to have accepted their obligations around disclosure and that is one important step in this process.”

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Click here to download a copy of the 2009 Carbon Disclosure Project Report

Today the Investor Group on Climate Change (IGCC) and the Australian Institute of Superannuation Trustees (AIST) will launch a guide to help superannuation trustees incorporate climate change in their investment decisions.
 
Called ‘A climate for change II - A trustee’s guide to addressing climate risk’, the guide is a call to action for superannuation trustees on addressing climate change.
 
Australian superannuation trustees are responsible for over $1 trillion of retirement savings for working Australian’s. The investment decisions of superannuation trustees and their advisors will influence the nature of Australia’s transition to a low-emissions economy.  

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Click here to download a copy of the guide 

NEW YORK / BOSTON / LONDON / MELBOURNE / GENEVA:

Co-ordinated by four leading investor groups on climate change (the US-based Investor Network on Climate Risk (INCR), the European Institutional Investors Group on Climate Change (IIGCC), and the Investor Group on Climate Change (IGCC) in Australia and New Zealand) and UNEP FI, the statement formalises the private sector’s requirement for a strong, binding framework to succeed the Kyoto Protocol.

According to the statement, a global post 2012 agreement should specifically include:

• A global target for emissions reductions of 50-85% by 2050

• Developed country emissions reduction targets of 80-95% by 2050 with interim targets of 25-40% backed up by effective national action plans

• Developing country action plans that deliver measurable and verifiable emission reductions

• Government support for energy efficient and low carbon technology

• Measures that support the move to an effective global carbon market, including ambitious caps, fair and efficient allocation of allowances and links between different trading schemes

• Revisions to the Clean Development Mechanism to ensure real, permanent and verifiable emission reductions

• Public financing mechanisms that leverage private sector finance for investment in developing countries

• Measures to reduce deforestation and promote afforestation

• Support for adaptation to unavoidable climate change impacts

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Click here to download a copy of the statement

The Investor Group on Climate Change (IGCC), representing investors with funds under management of over $500bn, today commented on the economic consequences of a lack of regulatory certainty on climate change.

CEO of the IGCC, Mr Nathan Fabian said, “Make no mistake, delays in regulatory certainty stall investment decisions. This is so for both the Carbon Pollution Reduction Scheme (CPRS) and the Renewable Energy Target (RET).”

“Disappointingly, emissions trading certainty has been delayed again, but the certainty of a new renewable energy target will allow some important projects to go ahead.”

Passing the RET without the CPRS will not address the risk of climate change for institutional investors. Investors consider that the two schemes work together to set the framework necessary for a low‐carbon economic transition, but ultimately that some regulatory certainty is better than none.

“Investment in renewable energy has stalled and therefore so has the creation of new jobs and low‐carbon generation capacity,” Mr Fabian said.

“Even though the RET and CPRS would work best together for investors, we call on the Government to separate the Bills so that the RET can pass through the Parliament.”

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The Investor Group on Climate Change, representing investors of over $500bn, today called for certainty of emissions trading scheme commencement in Australia as soon as possible and before the Copenhagen meeting in December.

Investors believe the Carbon Pollution Reduction Scheme (CPRS) has adequate flexibility to accommodate outcomes from future international negotiations, especially because of the high levels of Emissions-Intensive Trade-Exposed Industry (EITE) assistance and a low 5% emissions reduction target if no immediate agreement is reached.

Chair of the Investor Group on Climate Change (IGCC), Mr Frank Pegan said, “Institutional investors are satisfied that the CPRS is flexible enough to accommodate the outcome of future international negotiations.”

“We are also satisfied that proposed industry assistance arrangements under the CPRS will protect the trade-exposed companies we part own and allow them to invest in emissions abatement.”

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