Friday, July 10, 2015

Give preference to engagement over fossil fuel divestment, experts say

Institutional investors re-considering their stakes in Fossil iPhone case fuel should engage with companies on the subject instead of divesting, whilst at the same time finding the transition to clean energy, health specialists have argued.

FOSSIL iPhone 5/5S Case Polka Dots

Speaking at a current F&C sustainability seminar in the Holland, Daan Spaargaren, sustainability policy counsel at institutional investor platform Eumedion, stressed that investors needed a bit more clarity from traditional FOSSIL iPhone 5 fuels companies about their exposure to new natural environment policy.

"Transparency on the issue may have a significant impact on the business model of merchants such as Shell, " he thought.

"Because climate change is along the agenda at international organisations matters UN and G7, both of built to set binding measures, climate insurance is to become a real risk for traders.

"The expected high price of CARBON emissions will come at the expense for investment returns. "

According to Spaargaren, investors could contribute to energy bath tubs through impact investing.

As a impressive example, he cited the issuance of green bonds for this sorry victim by asset manager EDF Suez, "which saw institutional investors undertake 63% of the issued paper".

"And by investing in solar panels within its commercial housing portfolio, " he other, "the €65bn metal scheme PMT created a fourfold 'win' position: eliminating climate change, improving its profile, lowering tenants' energy bills and supplying employment for its participants. "

Vicki Bakhshi, F&C's head of governance and sustainable investments, suggested that particular changing to "less exposed low-carbon index funds" could be an acceptable different than divesting fully from fossil fuel.

Among the fossil fuel-producing companies, many are much more exposed to carbon risk village others, she said, adding that particular gas was a "good transition fuels, compared with much more polluting coal as well oil".

"If a pension nonetheless divested from fossil energy, may well not only lose its voice covering the company but may also create a certain imbalance within its own asset corner, while increasing its risk with the help of for the short term, " Bakhshi said.

"A sudden and full divestment might also risk being at odds with the fiduciary duty towards the participants. "

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