New IGCC reports by the Australian National University on the Mining and Minerals, Property and Construction and Oil and Gas sectors show increasing climate risks for investors.
Reports also show that cost effective mitigation and adaptation opportunities are available.
At the Conference of Major Superannuation Funds yesterday in Brisbane, IGCC launched three new reports examining climate change risks and opportunities for investors in Australian industry sectors.
In a first for investors seeking to understand climate impacts, the reports combine comprehensive analysis of climate change risks and adaptation opportunities with energy and carbon risks and mitigation opportunities. The reports show that companies and their investors are already facing climate risks and that they will increase.
“By assessing emissions exposures and expected climate risks, investors can judge how companies will be placed to compete in a low carbon world and a high climate risk world,” said Nathan Fabian, Chief Executive of the IGCC.
“Investors can use the ANU research to reset their thinking about impacts on future company earnings and to engage more deeply with companies on their responses to climate change.”
Based on a likelihood of exceeding two degrees of global warming, investors in Australian industry can expect more intense cyclones, higher average temperatures, less water availability, more hot days, increased storm surges and more hailstorms to affect the operations of companies and assets.
At the same time, information on ways to adapt to climate impacts and reduce emissions and energy intensity are better than ever. Energy efficiency measures will often pay back investors within three years and can reduce energy use by industries such as property by as much as 50%.
“Many companies have been considering climate risks for some time. Investors should reconsider how current and impending climate change impacts will influence company prospects, and build that into their valuations,” Mr. Fabian said.
The reports are available at www.igcc.org.au
About the IGCC
The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand investors with approximately $900 billion in funds under management, who recognise that the financial return of an investment will be impacted by climate change. The IGCC aims to ensure that the risks and opportunities associated with climate change are incorporated into investment decisions for the ultimate benefit of individual investors.