HomeAbout usProjectsPublicationsNewslettersConferencesMediaNewsContactSearchLogin
News
Search
Sign up for Newsletter
1 May 2009
SRI-Adviser: Electric Utilities Are Unprepared for Carbon Regulation
Source: www.sri-advisor.com

by Robert Kropp

A new report by the Carbon Disclosure Project finds that disclosure by electric utilities on greenhouse gas emissions has improved, but falls short of the demands of a low carbon economy.

The urgency of a global transition to a low carbon economy is no longer in doubt, and companies that address the challenges of the transition are more likely to succeed over the long term. Sustainability investors whose portfolios are designed for long-term growth require clearly articulated disclosure of corporate strategies for addressing the risks and opportunities of climate change.

The International Energy Agency (IEA) estimates that more than half of electricity output worldwide in 2030 will come from power plants already in operation today. According to a recent report issued by the Carbon Disclosure Project (CDP) and written by RiskMetrics Group, "This underlines the importance of policies that put a price on carbon, slow electricity demand growth, and encourage faster turnover of power generating capital stock."

Yet the report, entitled CDP Electric Utilities Report 2009, found that only 16% of electric utilities are currently setting and disclosing absolute greenhouse gas (GHG) emission reduction targets, despite the fact that the industry accounts for 25% of global GHG emissions, the largest of all industry sectors.

The CDP, a nonprofit organization which represents 475 institutional investors with assets under management of $55 trillion, analyzed the responses of 110 electric utilities to its questionnaire. Its report concluded that while 61% of utilities forecast GHG emissions, and 59% have emission reduction plans in place, less than half disclosed current electricity generation capacity and production by fuel type. Only 14 respondents provided data on forecasted capacity and production.

Because few utilities have set and disclosed absolute emission reduction targets, while a higher percentage have set targets that allow for growth in overall GHG emissions, the reports questions the extent to which utilities are willing to pay for the reduction of emissions that will be required of them in a low carbon economy.

The report concludes, "Improved disclosure on forecasted capacity and production would help investors to better assess exposure to such carbon limits at this pivotal time in national and global climate regulation."

News
3 November 2009
SRI-Adviser: RiskMetrics Acquires KLD Research & Analytics.
2 November 2009
Responsible Investor: SEC reverses position on environmental and social shareholder resolutions.
1 November 2009
Responsible Investor: PRI sign-ups buck financial crisis - Bloomberg joins and launches ESG data on screens
28 October 2009
SocialFunds: Stanford Professor Receives 2009 Moskowitz Prize
19 October 2009
Responsible Investor: Norway fund to kick off huge green investment with 500m euro in listed equities and bonds
16 October 2009
SocialFunds: Obama Directs Federal Agencies to Reduce Emissions
15 October 2009
FT Adviser: Responsible investment myth broadsided by Kleinwort report
14 October 2009
SRI-Adviser: Sovereign Wealth Funds Are Slow to Adopt Santiago Principles
13 October 2009
Responsible Investor: RiskMetrics primed to buy KLD
10 October 2009
Responsible Investor: An investor’s look ahead to Copenhagen
[1]​[2]​[3]​[4]​[5]​[6]​[7]​[8]​[9]​[10]​[11]​[12]​[13]​[14]​[15]​[16]​[17]​[18]​[19]​[20]​[21]​[22]​[23]​[24]​[25]​[26]​[27]​[28]​[29]​[30]​[31]​[32]​[33]​[34]​[35]​[36]​[37]​[38]​[39]​[40]​[41]​[42]​[43]​[44]​[45]​[46]​[47]​[48]​[49]​[50]​[51]​[52]​[53]​[54]​[55]​[56]​[57]​[58]​[59]​[60]​[61]​[62]​[63]​[64]​[65]​[66]​[67]​[68]​[69]​[70]​[71]​[72]​[73]​[74]​[75]​[76]​[77]​[78]​[79]​[80]​[81]​[82]​[83]​[84]​[85]​[86]​[87]​[88]​[89]​[90]​[91]​[92]​[93]​[94]​[95]​[96]​[97]​[98]​[99]​[100]​[101]​[102]​[103]​[104]​[105]​[106]​[107]​[108]​[109]​[110]​[111]​[112]​[113]​[114]​[115]​[116]​[117]​[118]​[119]​[120]​[121]​[122]​[123]​[124]​[125]​[126]​[127]​[128]​[129]​[130]​[131]​[132]​[133]​[134]​[135]​[136]​
Sustainable Investment Research Platform
Provided by Webforum