BlackRock report makes climate change an investor issue
BlackRock, the world's largest fund manager, has issued an investor report on climate change. The report suggests a link between a company reducing its carbon "intensity", as measured by carbon emissions divided by sales, and improved productivity. It suggests that policies and regulations about greenhouse emissions and the use of renewable energy could result in extreme loss of capital and "stranded" assets. BlackRock says there is little evidence that shares in companies most susceptible to climate risks are trading at a discount, but it expects that to change. Several pension and public sector funds have already began selling shares in high carbon-sensitive activities.

As the world's leaders prepare to meet in Paris next week for the United Nations climate talks, the world's largest fund manager has put out a report on climate change as an investor issue.

The report by US-based BlackRock, "The price of climate change: global warming's impact on portfolios", sees a link between a company reducing its carbon "intensity", as measured by carbon emissions divided by sales, and improved productivity.

BlackRock says there is little evidence that shares in companies most susceptible to climate risks are trading at a discount, but it expects that to change down the track.

Even sceptics need to pay attention because their investments will be affected by governments legislating to curb greenhouse gas emissions.

The report suggests that policies and regulations about greenhouse emissions and the use of renewable energy could result in extreme loss of capital and "stranded" assets.