UNEP Finance Initiative Investor Briefing: Carbon in Investment Portfolios
On July 19, 2013, the United Nations Environment Programme Finance Initiative (UNEP FI) released a new Investor Briefing [PDF] that explains why and how investment institutions should begin to track, disclose, and decrease the greenhouse gas (GHG) emissions associated with their investment portfolios.
The Investor Briefing–produced by UNEP FI in cooperation with Allianz, Aviva, Hermes, HSBC, Eurizon Capital, Inflection Point Capital, Pax World Investments, Robeco SAM and Trillium Asset Management–argues that given public scrutiny of GHG emissions and trends toward greater corporate accountability, there is a strong expectation for investment institutions to play a part in GHG emissions reductions. Further, the Investor Briefing argues that due to the high risk of sudden carbon regulation, the decarbonization of investment portfolios is a necessary measure to mitigate risk. The Briefing then provides a general framework for determining the carbon footprint of investments and examines several case studies of investment groups.