There is increasing pressure on energy producers from climate risks. One key concept which is gaining prominence in lieu of the risks is “Carbon Bubble” and the related impact of divestment movement. As a part of the Paris climate agreement, 192 countries reaffirmed their commitment to reduce emissions and limiting the global temperature increase to less than 20C. Energy producing companies are under scrutiny from investors, shareholders, employees and customers and other related stakeholders to reduce carbon footprint and to demonstrate that their business are aligned to help build an efficient “Low Carbon Portfolio”. The goal is to channelize investments, assess climate risks and opportunities and mitigate future climate change trajectories, align it as key service for fossil fuel energy divestment, portfolio and asset management.
The Oil and Gas Climate Initiative (OGCI) is a CEO-led organization currently made up of 10 oil and gas companies that want to contribute to climate change solutions.
This first report is intended to explain what OGCI is doing, and why, and to explore the role oil and gas companies can play to provide more energy with lower emissions.
Corporate PPAs provide an opportunity for businesses to commit to using renewable energy, thereby reducing their carbon footprint, improving business sustainability and providing greater energy security and price certainty. For generators and funders in markets where subsidies are being withdrawn, they can be seen as the anchor for projects to be “bankable”.
The Oil and Gas Climate Initiative (OGCI) is a CEO-led organization currently made up of 10 oil and gas companies that want to contribute to climate change solutions.
This first report is intended to explain what OGCI is doing, and why, and to explore the role oil and gas companies can play to provide more energy with lower emissions.
Corporate PPAs provide an opportunity for businesses to commit to using renewable energy, thereby reducing their carbon footprint, improving business sustainability and providing greater energy security and price certainty. For generators and funders in markets where subsidies are being withdrawn, they can be seen as the anchor for projects to be “bankable”.
The Portfolio Decarbonisation Coalition presented the results of an investor research titled "Back to the laboratory: are global chemical companies innovating for a low-carbon future?" at an event organised by Finsif, CDP and Sitra on 25 August 2015. The theme of the event was "Managing climate risk in investments".
The Role of Carbon Offsets: Moving Toward Carbon Neutrality - White PaperRenewable Choice Energy
Major brands—including Microsoft, Google, and Disney—are expanding their sustainable energy strategy to include carbon offsets, a powerful tool for helping progressive companies meet emission reduction targets and move themselves toward carbon neutrality.
Download our new white paper and learn:
-The role of offsets in a carbon neutrality strategy
-How unique projects can be used to refine your carbon reduction efforts
-The value and credibility of offsets
Carbon reduction through offsetting can be an affordable, credible, and powerful means of achieving your goals. 2014 is a great time to act and make carbon offsets an integral part of your carbon reduction plan. Learn more today!
TBLI CONFERENCE @BOOTH/KELLOGG 2015: "How key ESG metrics can help the market...stephanietbli
Learn how key ESG metrics are analyzed by the markets to identify corporate risks, opportunities, and performance gaps in key areas. The 2015 proxy season already offers focus topics on ESG metrics on climate change, leadership diversity, water accessibility, executive compensation, political donations, and developing U.S. ESG standards for industries by SASB.
Katherine Schrank - CEO - Sustainability Partners, Inc.
Tony Lovell, of Soil Carbon Australia, explores the degrees of measurement exactitude needed for a market to operate. Tony is a thought leader in the soil carbon movement worldwide.
The Portfolio Decarbonisation Coalition presented the results of an investor research titled "Back to the laboratory: are global chemical companies innovating for a low-carbon future?" at an event organised by Finsif, CDP and Sitra on 25 August 2015. The theme of the event was "Managing climate risk in investments".
The Role of Carbon Offsets: Moving Toward Carbon Neutrality - White PaperRenewable Choice Energy
Major brands—including Microsoft, Google, and Disney—are expanding their sustainable energy strategy to include carbon offsets, a powerful tool for helping progressive companies meet emission reduction targets and move themselves toward carbon neutrality.
Download our new white paper and learn:
-The role of offsets in a carbon neutrality strategy
-How unique projects can be used to refine your carbon reduction efforts
-The value and credibility of offsets
Carbon reduction through offsetting can be an affordable, credible, and powerful means of achieving your goals. 2014 is a great time to act and make carbon offsets an integral part of your carbon reduction plan. Learn more today!
TBLI CONFERENCE @BOOTH/KELLOGG 2015: "How key ESG metrics can help the market...stephanietbli
Learn how key ESG metrics are analyzed by the markets to identify corporate risks, opportunities, and performance gaps in key areas. The 2015 proxy season already offers focus topics on ESG metrics on climate change, leadership diversity, water accessibility, executive compensation, political donations, and developing U.S. ESG standards for industries by SASB.
Katherine Schrank - CEO - Sustainability Partners, Inc.
Tony Lovell, of Soil Carbon Australia, explores the degrees of measurement exactitude needed for a market to operate. Tony is a thought leader in the soil carbon movement worldwide.
Unburnable Carbon - Are the world's financial markets carrying a carbon bubble?Marcellus Drilling News
A "report" issued by the global warming true believers at the Carbon Tracker Institute. The report makes the false claim that fossil fuel companies are vastly overvalued because the assets they own, carbon in the ground, will never get used because so-called renewable sources are coming on strong and will replace those sources. The point they try to make is that oil and gas companies are essentially worthless and investors should stay away from them. What they call a "carbon bubble." Horse manure.
Running head SOCIAL PERFORMANCE OF AN ORGANIZATION .docxtoltonkendal
Running head: SOCIAL PERFORMANCE OF AN ORGANIZATION 1
SOCIAL PERFORMANCE OF AN ORGANIZATION 2
SOCIAL PERFORMANCE OF AN ORGANIZATION: BP PLC. CASE STUDY
Renzo Rey de Castro
Strayer University
Professor Melvin Murphy
BUS-475
August 1, 2016
Nature, structure and type of products
BP plc., formerly referred to as the British petroleum company, is among the world’s largest energy companies. It is a vertically integrated oil and gas company. Through two main operating segments, the upstream and downstream segments, it finds, develops, and produces essential sources of energy and converts them to products that people need. More comprehensively it operates in all areas of oil and gas production. This includes exploration, production, refining, distribution and marketing of oil and oil products. Besides that, it as well is involved in petrochemicals, power generation and trading with interests in renewable energy, biofuels and wind power. The company generally creates value from the hydrocarbon value chain. Besides having interests in alternative sources of energy such as wind and other renewable energy, the corporation as well has research facilities, besides wind farms that are aimed at continually finding new methods of producing environmental friendly energy and methods of ensuring that even those energy sources that are mainly not environmental friendly are produced in the most environmental friendly way.
The company operates in six continents and thus needless to say, it is a Multinational Corporation. Its services and products are available in more than 100 countries across those continents where it operates. It was established in the year 1908. It is until the change of Persia’s name to Iran that it became Anglo-Iranian Oil Company in 1935 having been Anglo Persian Oil Company there before since inception. It became British Petroleum in 1954 and later on in the 21st century became just BP (The History of the British Petroleum Company, 2 Vols. 2012).
As a corporation, it is owned by shareholders whereby there are about 1.2 million of them. It is listed at the London Stock Exchange and is a member of the FTSE 100 Index. It as well has secondary listings on Frankfurt Stock Exchange and the New York Stock Exchange. It has a refinery capacity of around 2.7 crude oil barrels per day and has interest in about 17 moil refineries. Castrol, Acro, Aral, ampm and Wild Bean café, besides BP, are its main brands (Lustgarten, 2012).
The company has the objective of geographically locating oil and gas sites through exploration and coming up with producing methods to extract the finds. Most of its international activities consist of joint ventures. In these joint ventures, the company offers expertise as well as training and management support and in this method it enables other oil companies to come up with and develop new business ventures ...
How are Impact Investors Tackling the New Opportunities in Climate InvestmentSG Analytics
Impact investors are incorporating frameworks to identify climate investment opportunities and invest in bonds of companies with sound environmental policies.
Energy & Sustainability Goal-Setting: A Guide To 7 Top Third Party StandardsLeon Pulman
Recent research finds that organizations have more success on energy and sustainability initiatives when they set public goals. But with so many options available, how do you determine which goals will drive the greatest value for your organization? And against what criteria should you assess them?
Our goals primer eBook summarizes the top global, third-party benchmarking standards and recommends how to choose the right one to accelerate your energy and sustainability ambitions.
Sustainability goal setting guide to 7 top third party standardsJackson Seng
Recent research finds that organizations have more success on energy and sustainability initiatives when they set public goals. But with so many options available, how do you determine which goals will drive the greatest value for your organization? And against what criteria should you assess them?
Our goals primer eBook summarizes the top global, third-party benchmarking standards and recommends how to choose the right one to accelerate your energy and sustainability ambitions.
Six lunatic European oil companies are trying to convince the UN to impose a worldwide carbon tax, effectively shutting down their own companies. What do you call companies that want to commit suicide?
Business guide on carbon emission redution and sustainabilityBarney Loehnis
Guide on how businesses can reduce their carbon footprint, with a focus on Asia and Hong Kong, but broadly relevant for any global brand.
The guide was developed by contributions from Cathay Pacific, HSBC, Hang Seng, Hang Lung, Hong Kong Land, OSBC, Bank of East Asia (BEA), Aegis, MTR Corporation, Sino Group, Standard Chartered, Gammon Hong Kong Electric, China Light and Power (CLP), OOCL, PCCW, DTZ, Town Gas and Swire Pacific
What's The Difference Between Climate Risk And Carbon Accounting?thebulkcart
In the world of sustainable business, there are several key terms and concepts that are important to understand. Two of these terms are climate risk and carbon accounting. While they may sound similar, they actually refer to different aspects of sustainability and play distinct roles in the evaluation and management of environmental impact.
https://www.thebulkcart.com
Similar to How are investors responding to the concept of carbon bubble and the impact of divestment on fossil fuels sector (20)
Innovate 4 Climate is the distinguished global event hosted by World Bank on climate finance, climate investment and climate markets. It is a platform for providing exchange of knowledge and best practices. The event aims to promote investment opportunities in mitigation, adaptation, resilience and inclusive development. I4C was launched in 2017 and was designed to bring together thought leaders interested in linking climate innovation with investment opportunities – transforming dialogue into action.
Country’s progress and sustained economic growth is a reflection to the way we dwell in the place we thrive and strive. Building healthy dwellings and developing niche in sync with Industry 4.0 interface which are based on IoT,data analytics and smart grids are the latest revolution to march ahead by applying it in real estate sector.
Covid 19 pandemic outbreak has resulted in unrest, medical emergency, uncertainty and global economic slowdown. It has also resulted in wide open gap and unforeseen inadequacy in investment in pandemic preparedness and response. Though a number of guidelines, protocols, panel and commissions have been set up for recommendations and preparedness on how to better identify, handle, prevent, respond in such cases, government seems to struggle to reconcile and take the advantage edge out of the lockdown as at the primary stage if preparedness and response was taken, it would have not created conflict between health, economy and livelihoods. A citizen centric support to government interventions and protocols given if followed by the citizens shall strengthen government machinery and planning.
Preparedness in cities and other urban settlements is critical for effective local, regional, national and global responses to COVID-19. A well-designed pandemic plan in urban settlements allows to respond in a flexible way to varying levels of severity and to refine your response as needed. Education, housing, work, socializing and community kinship shapes the way we live, strive and thrive in cities. Population density is not the only parameter to be blamed for the pandemic in developing countries. The type of housing - township, apartments, independent houses, make shift homes, informal settlements, redevelopment buildings and slums also are a key parameter that hinders controlling the spread or transmission of outbreak. The way we live – sanitation, hygiene, food habits, our environment, transport, connectivity, our social outlook and approach also are detrimental and have a direct bearing for the outbreak to spread to the extent of being a pandemic.
Be it with regard to natural, accidental or intentional means, public health has always been under threat. As is the case with the current COVID 19 pandemic, public health preparedness to prevent, respond to and recover is key for securing country’s overall development and growth.
Climate change is a significant threat across varied sections and in varied regions there has been a consensus about the need for businesses to play key role in ensuring transparency around climate risks and opportunities. To steer climate action, science-based emissions reduction targets validated by Science Based Target initiative (SBTi) and climate change scenario analysis based on the TCFD recommendations have been suggested to be adopted. These aimed to future proof businesses by identifying risks for mitigation and adaptation with the view to deliver value for business, investors, stakeholders and the environment at large. With real estate, contributing to one third of all the global carbon emissions according to UNEP, the responsibility has increased manifolds to address the impact of climate change on real estate portfolio.
There is increasing pressure on energy producers from climate risks. One key concept which is gaining prominence in lieu of the risks is “Carbon Bubble” and the related impact of divestment movement. As a part of the Paris climate agreement, 192 countries reaffirmed their commitment to reduce emissions and limiting the global temperature increase to less than 20C. Energy producing companies are under scrutiny from investors, shareholders, employees and customers and other related stakeholders to reduce carbon footprint and to demonstrate that their business are aligned to help build an efficient “Low Carbon Portfolio”. The goal is to channelize investments, assess climate risks and opportunities and mitigate future climate change trajectories, align it as key service for fossil fuel energy divestment, portfolio and asset management.
As part of the Paris Climate Agreement goal of limiting global warming to 2oC, annual emissions reductions from agriculture must reach 1 gigatonne of carbon dioxide equivalent (GtCO2e/yr) by 2030. Plausible options to do this only deliver 21–40% of this target. Agricultural systems are witnessing ambitious goals and require transformative actions. Across food systems actions include: application of next generation technologies, increasing investment flows and improving returns, change in pattern of landholdings, enhancing capacities through skill development and capacity building, and via changes in the distribution and dynamics of the population and labour force. This transformation would generate multitude of benefits such as education, nutrition, health, water, sanitation, and empowerment of women and youth, and transforming rural livelihoods and indigenous communities.
Sustainability is regarded as a key goal for policy makers across all sectors and at all levels, be it with regard to local, regional and global scale. Sustainability as a criteria attribute in real estate sector, which was ignored over a period of years has gained enhanced level of importance in recent years amongst varied stakeholders including developers, investors, owners, tenants, private entities, government bodies and the communities. Policies regarding sustainability have been demonstrated in the Kyoto Protocol, United Nations Principles of Responsible Investment (PRI) and the European Union Directive on Energy Performance of Buildings. Similarly regulation at the city level have council enforcing environmental building codes and have varied rebate options, incentives such as tax breaks, flexible and cost effective financing mechanisms, for green buildings. The real estate sector has both set of risks and benefits associated and most often the risks are associated with future uncertainties in terms of policies, regulation and enforcement. Urban housing and the burgeoning infrastructure requirement have triggered local and regional issues such as energy policies, deforestation, water scarcity, air pollution and over exploitation of resources.
The concept paper with regard to e-voting in India – suggestive policy framework is conceptualized under the Eco Endeavourers Network endeavour initiative – innovation hub and new concepts. It is an endeavour towards greater citizen participation and for their rights and their role in nation building and constitutional affairs. It aims at improving greater security, transparency and to increase the voter turnout, use of limited resources in a resource constraint economy, reduced manpower that are deployed before, during and after the elections are held. Foreseeing increased application of blockchain technology, big data and app based advancement, the paper considers suggestive policy framework of e-voting to oversee the prospects and its suggestive implications for the decision and policy makers. Prospects of having an internet enabled/e-voting can be an efficient alternative to the current EVM voting based elections.
World Oceans Day 8th June, 2019 provides an opportunity to honour, protect, and conserve the oceans. United Nations Sustainable Development Goal # 14 commits countries to unite over what is a truly global responsibility – the protection of our oceans and the lives that depend on it.
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5th June, designated as “World Environment Day” by the United Nations provides an opportunity to widen the basis for a more responsible conduct by individuals, business entities, organizations, government bodies, municipalities and communities towards protecting Environment. Every year World Environment Day is organized with a theme focus, which calls for attention on a particular environmental concern. This year, 2019 the theme is “Beat Air Pollution” – Take the Mask Challenge! This year China is hosting the day and has called upon to take up the mask challenge in beating air pollution via change in lifestyle habits which in turn will help in reducing GHG emissions and also to negate health effects.
In connection with World Environment Day on 5th June, 2019,
Eco Endeavourers Network is conducting an online one day campaign and awareness drive with its theme " Let's strive for sustainable, clean, healthy and climate positive cities and communities"
This 22nd May, 2019 as we commemorate the International Day for Biodiversity with the theme: Our Biodiversity, Our Food, Our Health, the focal point is on how biodiversity acts as a basis for transforming food systems and improving health and well-being. The theme also aims to leverage the opportunity in knowledge transfer, spreading awareness about the dependency on our food systems for nutrition, health and sustainability.
With sustainability being the focal point across varied organizations and business entities, the role of sustainability practitioners in the organization hierarchy has increased manifolds. What matters is how companies with sustainable business strategies are communicating business value to investors and stakeholders via their sustainability practitioners and steering business of value with its management board mission of creating profit along with protecting Environment. The sustainability practitioner’s role is to drive the company agenda – “Sustainability driven productivity.” Their role as CSOs (Chief Sustainability Officers) is to better inform, demonstrate, determine, assess and mover forward business value of sustainability to its investors, shareholders and stakeholders at large.
As a part of annual Diwali celebration at school of my son, Podar Jumbo Kids at Hiranandani Estate, Thane conducted an event Diwali Fete at their school premises on 2nd November, 2018. Eco Endeavourers Network (EEN) leveraged this opportunity and held a “Sustainable Development Goals Educative and Awareness Kiosk” for the school children and parents accompanying them by raising awareness on United Nations Sustainable Development Goals (SDGs) and in simple way provided educative and fun learning and play mode games and handout/tool kit mentioning what each of the 17 goals mean.
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The World Water Week from 26th - 31st 2018 event concluded yesterday. As like every year, it was organized by Stockholm International Water Institute (SIWI). It highlighted water as a critical resource. It emphasized nature based solutions as way forward towards resolving water issues. This year the theme was – “Water, Ecosystems and Human Development”. Be it with regard to water shortage, water quality, water issues in extreme weather events - floods, water has been the most pressing issue and challenging resource that needs to be addressed. Healthy ecosystems allow plant and animal life to thrive and strive and offer multitude of benefits for human development and all these work together as microcosm in itself and for developing synergy, work in co-operation during trans-boundary conflicts with regard to water, water governance strengthening, and equitable access to clean water.
The newsletter for the month of August 2018 main focus is Sustainability with the thought "We co-create a culture, when we practice sustainability in our day to day life"
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Situated in Pondicherry, India, Kuddle Life Foundation is a charitable, non-profit and non-governmental organization (NGO) dedicated to improving the living standards of coastal communities and simultaneously placing a strong emphasis on the protection of marine ecosystems.
One of the key areas we work in is Artificial Reefs. This presentation captures our journey so far and our learnings. We hope you get as excited about marine conservation and artificial reefs as we are.
Please visit our website: https://kuddlelife.org
Our Instagram channel:
@kuddlelifefoundation
Our Linkedin Page:
https://www.linkedin.com/company/kuddlelifefoundation/
and write to us if you have any questions:
info@kuddlelife.org
WRI’s brand new “Food Service Playbook for Promoting Sustainable Food Choices” gives food service operators the very latest strategies for creating dining environments that empower consumers to choose sustainable, plant-rich dishes. This research builds off our first guide for food service, now with industry experience and insights from nearly 350 academic trials.
UNDERSTANDING WHAT GREEN WASHING IS!.pdfJulietMogola
Many companies today use green washing to lure the public into thinking they are conserving the environment but in real sense they are doing more harm. There have been such several cases from very big companies here in Kenya and also globally. This ranges from various sectors from manufacturing and goes to consumer products. Educating people on greenwashing will enable people to make better choices based on their analysis and not on what they see on marketing sites.
"Understanding the Carbon Cycle: Processes, Human Impacts, and Strategies for...MMariSelvam4
The carbon cycle is a critical component of Earth's environmental system, governing the movement and transformation of carbon through various reservoirs, including the atmosphere, oceans, soil, and living organisms. This complex cycle involves several key processes such as photosynthesis, respiration, decomposition, and carbon sequestration, each contributing to the regulation of carbon levels on the planet.
Human activities, particularly fossil fuel combustion and deforestation, have significantly altered the natural carbon cycle, leading to increased atmospheric carbon dioxide concentrations and driving climate change. Understanding the intricacies of the carbon cycle is essential for assessing the impacts of these changes and developing effective mitigation strategies.
By studying the carbon cycle, scientists can identify carbon sources and sinks, measure carbon fluxes, and predict future trends. This knowledge is crucial for crafting policies aimed at reducing carbon emissions, enhancing carbon storage, and promoting sustainable practices. The carbon cycle's interplay with climate systems, ecosystems, and human activities underscores its importance in maintaining a stable and healthy planet.
In-depth exploration of the carbon cycle reveals the delicate balance required to sustain life and the urgent need to address anthropogenic influences. Through research, education, and policy, we can work towards restoring equilibrium in the carbon cycle and ensuring a sustainable future for generations to come.
Characterization and the Kinetics of drying at the drying oven and with micro...Open Access Research Paper
The objective of this work is to contribute to valorization de Nephelium lappaceum by the characterization of kinetics of drying of seeds of Nephelium lappaceum. The seeds were dehydrated until a constant mass respectively in a drying oven and a microwawe oven. The temperatures and the powers of drying are respectively: 50, 60 and 70°C and 140, 280 and 420 W. The results show that the curves of drying of seeds of Nephelium lappaceum do not present a phase of constant kinetics. The coefficients of diffusion vary between 2.09.10-8 to 2.98. 10-8m-2/s in the interval of 50°C at 70°C and between 4.83×10-07 at 9.04×10-07 m-8/s for the powers going of 140 W with 420 W the relation between Arrhenius and a value of energy of activation of 16.49 kJ. mol-1 expressed the effect of the temperature on effective diffusivity.
Characterization and the Kinetics of drying at the drying oven and with micro...
How are investors responding to the concept of carbon bubble and the impact of divestment on fossil fuels sector
1. How are investors responding to the
concept of carbon bubble and the impact
of divestment on fossil fuels sector?
Let’s cap on the future emissions and build sustainable strategies
Eco Endeavourers Network
Striving for the planet in peril
About Us:
Eco Endeavourers Network is a thought leadership platform to create awareness, carry out research, and
disseminate knowledge & capacity building on Environment, Sustainability, Climate Change and Energy. We aspire
to promote environmental friendly and sustainable policies to varied stakeholders.
To begin with we are a team of two, with few members and volunteers joining in and hope to strive and leverage
the opportunity of developing thought and knowledge partnerships within and beyond borders for a united cause
of serving the mother earth and striving to promulgate environmental stewardship.
Our Team:
Dr. Prachi Ugle Pimpalkhute,
Founder, Eco Endeavourers Network
Sachin Pimpalkhute,
Co-Founder, Eco Endeavourers Network
Email : ecoendeavourers@gmail.com
prachiugle@gmail.com
Follow Us
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Dr. Prachi Ugle Pimpalkhute,
Founder, Eco Endeavourers Network
2. Introduction
There is increasing pressure on energy producers from climate risks. One key concept which is
gaining prominence in lieu of the risks is “Carbon Bubble” and the related impact of divestment
movement. As a part of the Paris climate agreement, 192 countries reaffirmed their commitment
to reduce emissions and limiting the global temperature increase to less than 20C. Energy
producing companies are under scrutiny from investors, shareholders, employees and customers
and other related stakeholders to reduce carbon footprint and to demonstrate that their business
are aligned to help build an efficient “Low Carbon Portfolio”. The goal is to channelize
investments, assess climate risks and opportunities and mitigate future climate change
trajectories, align it as key service for fossil fuel energy divestment, portfolio and asset
management.
Of significant concern to investors is that some fossil fuel companies aren’t taking this target or
threat seriously, which could lead to stranded assets and devaluation of companies across the
industry. Since most of the financial funding flows into oil, gas and coal, the onus lies in raising
accountability per se about the potential bubble and its impact to the economic dynamics and in
negating the risks.
What is carbon bubble?
Carbon bubble aims to valuate dependence on fossil fuel based energy production as most often
true costs of CO2e are not yet valued at the stock markets. Moving ahead the question that often
arises is what are the losses companies would face if the carbon bubble were to burst and impact
of it on the financial markets? To resolve carbon bubble, identifying outliers includes analyzing
the sectors and companies where risk is more and informing carbon reduction strategies.
Investor’s response to climate risks associated with fossil fuel companies?
The perceived risks associated with investing in fossil fuel companies have gained momentum
like never before. Divestment drive too has gained prominence, however most of the companies
feel that it is not yet having financial impact on organizations. When giving up the shares, these
divestment personnel often tend to lose their say in the company as the few among do not
prioritize environmental impact as a criteria for consideration. As regard to the shareholders
response, the companies need to identify, act, be transparent, accountable, respect and work on
the perceived risks associated. Renewable energy use has gained momentum across all levels and
countries are marching ahead towards being carbon neutral or zero emissions hubs, however not
all countries especially the developing countries can apply it all levels. Though subsidies are
available for application of renewable energy, however it is not a 100 % option for most of them
as they are certain other priority areas or issues of concern that need equal attention. With this
perception, only phase wise and areas with high requirements are opting for renewable energy as
source. In order to address and achieve the task of zero emissions, fossil fuel companies need to
work on creating a low- carbon portfolio, for example: Shell, BP are, already creating.
Benchmarking the portfolio help capping future emissions and for investors to take wise
decisions.
3. More so if the fossil fuel companies fail to adhere to the target and risks associated, they would
incur stranded assets and devaluation of companies. In connection with this, a notable mention
towards building low carbon portfolio is “carbon pricing” – it helps mitigate the impact, innovate
new business models and makes relocation of carbon prices conducive for the investors as well
as associated stakeholders. It shall also allow defining rules, modalities and procedures for
efficient carbon market implementation and in building future trajectories.
Carbon regulations and actions in the form of renewable portfolio standards, voluntary reduction
commitments have gained prominence and so were the action implementation demonstrated at
the G7 summit on decarbonization and creating lower carbon emitting sources of energy. Back in
2013, the UN climate panel had briefed that carbon emissions be capped at trillion tons, at we are
half way there, and the question that now arises is how the remaining emissions be apportioned.
The fact that climate change could create “carbon bubble” in equity markets is concern among the
investors and this fact was validated when HSBC released an analysis finding that oil majors are
at significant risk from “unburnable” reserves and agreeing to consider divestment from fossil
fuel companies. International Energy Agency (IEA) calculates that no more than about 1,440
gigatons of carbon can be emitted globally by 2050. It stated that emissions have already reached
400 gigatons, which leaves 1,000 gigatons current reserves to be burned. The bigger threat to the
fossil fuels companies’ value in India comes from reduced demand for renewable energy. Even if
the rates are subsidized and on the basis of divestment, it’s usage is maximized the extent of
area/places/cities who avail benefit differs as priority issues differ from place to place. This leads
to lower oil and gas prices and also the potential value for fossil fuel players at risk could increase
to 45 – 55 % of current market capitalization. The investors do price in this risk when
considering the project as diversification, off grid markets and clean energy portfolio have gained
momentum and companies in this sector are taking carbon risks as priority area of concern.
Case Study briefing: According to the Transition Pathway Initiative of Management Quality and
Carbon Performance of Large Corporations (Grantham Institute, United Kingdom) database,
when one takes into account two major oil and gas companies: ONGC is rated as CA 100 company.
2018 was its first carbon performance assessment year and, pledged that it will continue that as
the very strategy in their company low carbon portfolio. The following questions were placed for
performance assessment study:
ONGC findings as per TPI (Transition Pathway Initiative):
1. Does the company acknowledge climate change as a significant issue for the business? – Yes
2. Does the company explicitly recognize climate change as a relevant risk and/or opportunity to
the business? – Yes
3. Does the company have a policy (or equivalent) commitment to action on climate change? –
Yes
4. Has the company set greenhouse gas emission reduction targets? – No
5. Has the company published information on its Scope 1 and 2 greenhouse gas emissions? – Yes
4. 6. Has the company nominated a board member or board committee with explicit responsibility
for oversight of the climate change policy? – No
7. Has the company set quantitative targets for reducing its greenhouse gas emissions? – No
8. Does the company report on Scope 3 emissions? – Yes
9. Has the company had its operational (Scope 1 and/or 2) greenhouse gas emissions data
verified? – Yes
10. Does the company support domestic and international efforts to mitigate climate change? - No
11. Does the company have a process to manage climate-related risks? – No
12. Does the company disclose Scope 3 use of product emissions? – No
13. Has the company set long-term quantitative targets for reducing its greenhouse gas emissions?
– No
14. Has the company incorporated environmental, social and governance issues into executive
remuneration? – No
15. Does the company incorporate climate change risks and opportunities in their strategy? – No
16. Does the company undertake climate scenario planning? – No
17. Does the company have an internal price of carbon? – No
18. Has the company reduced its operational (Scope 1 and 2) greenhouse gas emissions over the
past 3 years? – No ; as 2018 was their first year of carbon performance assessment
19. Does the company provide information on the business costs associated with climate change?
No ; as 2018 was their first year of carbon performance assessment
Global warming potential of proven reserves:
As per the European Free Alliance (European Green Party), when the investors realize that a large
part of fossil fuel reserves cannot be burned, energy undertaking could lose 40 - 60 % of their
value on stock exchange.
As regard to Carbon Tracker Initiative study on Unburnable Carbon, the total carbon potential of
the Earth’s known fossil fuel reserves comes to 2795 GtCO2. 65% of this is from coal, with oil
providing 22% and gas 13%. This means that governments and global markets are currently
treating it as assets, reserves equivalent to nearly 5 times the carbon budget for the next 40 years.
The investment consequences of using only 20% of these reserves have not yet been assessed
If 2°C target is applied meticulously then most of the declared reserves owned by the World’s
largest listed coal, gas and oil companies and their investors would be subject to losses as most of
their assets would become stranded.
5. Data Source: BP Statistical Review of World Energy
Listed companies by estimated carbon reserves in India:
Coal (Gt Co2) Oil (Gt Co2) Gas (Gt Co2)
Coal India Ltd. 6.69 Oil India Ltd. 0.16 Oil & Natural Gas Corp. Ltd. 0.18
Tata Steel Ltd. 2.29 - - - -
Tata Power Co. Ltd. 1.49 - - - -
NTPC Ltd. 0.28 - - - -
Jindal Steel & Power Ltd 0.26 - - - -
Neyveli Lignite Corp. Ltd 0.19 - - - -
Gujarat NRE Coke Ltd. 0.40 - - - -
Gujarat NRE Coking Coal
Ltd.
0.12 - - - -
Data Source: BP Statistical Review of World Energy; Sustainable Stock Exchange
12.63 12.28
0.19 0.16
0
2
4
6
8
10
12
14
Total (Gt Co2) Coal (Gt Co2) Gas (Gt Co2) Oil (Gt Co2)
Distribution of fossil fuel reserves between stock exchange - India
Total (Gt Co2)
Coal (Gt Co2)
Gas (Gt Co2)
Oil (Gt Co2)
6. Are the capital markets aware of the risks and how to protect their investments from climate
change risks?
Are asset allocation and benchmarking done by all the fossil fuel companies?
As per Carbon Tracker Initiative, Unburnable carbon report –
Company level:
o Reserves x carbon factor = carbon-dioxide potential
o Exchange – level = Sum of company carbon-dioxide potentials = Exchange total
o Global- level = Sum of exchange totals > Global carbon budget
As per the Potsdam Institute research calculation – to reduce the change of exceeding 2oC
warming to 20%, the global carbon budget from 2000 -2050 is 886 GtCO2. If one minuses the
emissions from the first decade of this century, this leaves a budget of 565 GtCO2 for the
remaining 40 years to 2050.
Strategies:
Identifying outliers, where risks are concentrated to better inform and facilitate carbon
reduction strategies
Tilting company portfolios towards lower carbon emissions / intensity ; portfolio
optimization
Most of the strategies revolve around the requirement to retrofit cooling towers for the
power plants. Of relevance as per the Environmental Protection Agency (EPA) has been
application of cooling towers that reduce water withdrawal and also reduce water
discharge temperature. Also focus strategy is on Best Available Technology.
Identify companies with greater risks with carbon management strategies relative to
peers.
Preparing transparent and understandable carbon portfolio.
ESG criteria, one market index of relevance to coal, oil and gas sector.
Engage with market regulators for greater disclosure on climate risks
Assessing impact on cash flow and valuation of stocks and reinvestment in energy
efficiency
7. According to the Impax asset management study and Grantham Institute the following are the
recommendations that investors should follow:
Reduce exposure to E&P Stocks whose assets are likely to be most impacted by Carbon
Prices
Maintain their energy factor exposure, redeploy the reduced amounts into stocks whose
principal business is in the Energy Efficiency sector (“Energy Efficiency Stocks”) – prices of
these stocks* correlated to retail energy prices
MSCI World Energy study on why companies active in renewable energy markets are not
included?
Their stock prices have lower historical correlation to both the oil price and the MSCI
World Energy Index than do Energy Efficiency Stocks, most likely due to the high exposure
of renewable energy markets to changes in government policies
Renewable E&P Stocks is dominated by a small number of large cap names, provides
unattractively high level of stock-specific risk.
8. References:
1. www.carbontracker.org
2. Carbon Tracker http://www.carbontracker.org/report/the-us-coal-crash/
3. http://aswathdamodaran.blogspot.co.uk/2014/12/the-oil-price-shockprimary-
secondary.html
4. Investing in a Time of Climate Change’, Mercer, 2015
http://www.carbontracker.org/report/lost_in_transition/
5. http://www.theactuary.com/features/2015/06/carbon-risk-how-do-we-measure-and-
manage-it
6. http://www.iigcc.org/files/publication-files/Carbon_Compass_final.pdf
7. Carbon supply cost curves series, available at
http://www.carbontracker.org/library/#capex-analysis
8. http://www.smithschool.ox.ac.uk/research-programmes/stranded-assets/satc.pdf
9. “US solar shares rise on hopes for tax credit extension” -
http://www.reuters.com/article/us-usa-stocks-solar-idUSKBN0TY2KF20151215.