Today 7th December 2015, Carbon Tracker launches a new set of “Recommended Strategic Risk Engagement Principles for Fossil Fuel Companies”
The principles are aimed at helping investors bridging that gap with fossil fuel companies by obtaining management’s views on the market risks and acquiring measurable data that, in turn, can be interpreted by analysts, asset managers and other investor intermediaries.
In 2011, Carbon Tracker questioned whether the world’s capital markets were carrying a “carbon bubble”. 1 Further analysis has identified the fossil fuel reserves and resources at risk of becoming economically “stranded assets” due to a low-carbon energy transition. Mark Carney, Governor of the Bank of England, has recognized these risks and suggested that they may threaten financial stability. Mr. Carney has observed that markets suffer from a “tragedy of the horizons,” and that better disclosure could “act as a time machine,” illuminating risks that “may otherwise lurk in the darkness for years to come.”
With this in mind, Carbon Tracker identifies the strategic and business model risk information needed to fill that void.
Download the paper here.