Although there are some contradictory reports, overall an increasing number of investors are integrating climate change into their risk assessments.
As reported in the Guardian, a 2012 memo from several major investment networks responsible for more than $22.5 trillion in assets said, “Further delay in implementing adequately ambitious climate and clean energy policy will increase investment risk for institutional investors and jeopardize the investments and retirement savings of millions of citizens.”
Contrary to the general trend, the Asset Owners Disclosure Project (AODP), released a report at the end of 2012 that showed how the world’s biggest investors are not doing a great job managing climate risk.
According to a report conducted by Mercer, “The vast majority of investors now consider climate change a material investment risk or opportunity and incorporate climate change risk assessments into their existing investments.”
The combination of low interest rates and strong corporate balance sheets will drive stocks in 2013, including alternative energy. As the first half of the year comes to a close, there is good reason to believe that the second half will be good for alternative energy investors. In 2013 and beyond growing investor awareness will be a salient factor that will grow alternative energy stock valuations.
© 2013, Richard Matthews. All rights reserved.
Investors are Embracing Green
The Implications of Climate Science for Investors
Responsible Investing Incorporating ESG Factors
Stock Exchanges Increasingly Mandating Sustainability Reporting
Mandatory Emissions Reporting on the UK Stock Exchange
The CERINA Investment Model from IWR
A Company’s Environmental Comportment Impacts Stock Valuations
Investing in Green Economic Growth