Date post: | 22-Jan-2018 |
Category: |
Environment |
Upload: | sitra-ekologinen-kestaevyys |
View: | 27 times |
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Introduction
What is the aim of report:
• Summarize the dicussion on climate related risks
• Inform how climate risks will affect investments
• Give guidance on how to mitigate the risk
• Lay out a concrete path of how to proceed
Who should read it?
• Cities, municipalities, foundations, universities and other
portfolio holders.
• To mitigate risks globally everybody must be involved.
Climate risk increasingly affecting investment portfolios
Chart 1. Number of loss events
Source: Sitra & Munich RE
Initiatives to tackle the risks
posed by climate change march on
Article 173
WWF thrusts investors towards
science based portfolio alignment
What are the central investment risks?
REPUTATIONAL PHYSICAL TECHNOLOGICAL LEGISLATIVE SOCIAL
Increased frequency
of extreme weather
phenomena
worldwide
Increased amount
of problems related
to hot weather, sea
level rise
Change in
consumer behaviour
Emphasis on long-
term ownerhship
Declining
competitiveness of
smokestack
industries
Short-sightedness
related to
technological
development
Cost impacts of
sanctions and/or
taxes
Relative
competitiveness
impacts
Impacts of climate
change on
consumer behaviour
Investors’
commitment to
reducing
greenhouse gases
How does sustainability
affect companies’ operations?
Ability to
grow
Change in
consumer
behaviour
Changing patterns of
consumer behaviour
and the significance of
a good reputation
Costs
An unsustainable
growth model
weakens business
prospects.
This impacts the
ability to create
shareholder value
and cash flow
Cost of raw
materials and
carbon dioxide
emissions, a price
subject to upward
pressure.
Fines and
reputational risks
also raise the cost
level of financing.
What are the different investment strategies that can
be utilized?
The cost of action is low, the cost of inaction can be high.
Source: MSCI
Money flow to sustainable investments is accelerating
929
6 572
10775
18276
2128
8 723
12040
22890
Others USA Europe Total
2014 2016Billions $
Source: Global Sustainable Investment Review 2016
What should the cities, municipalities, foundations,
universities and other portfolio holders do?
1. Find out about your investment plan and how sustainability issues have been taken into
account.
2. Discuss your goals with all stakeholders.
3. Gather information with the help of partners.
4. Set sustainable investment goals and select an appropriate investment strategy.
5. Stick to the investment plan.
6. Follow up and measure development in relation to the goal set.
7. Update your investment plan at regular intervals (eg. annually).
Thank you.