It could disclose the amount of emission reduction that it would achieve from the change from coal to gas-fired power generation. Finally, it could be a target to increase the share of renewable energy in its generation mix from minimal to 30 per cent by 2030.
Our assessment enables us to have a more holistic view of the risk and opportunities of our investments by considering their exposure to emerging climate risks.
It also helps us to make our portfolios more climate-resilient by investing in companies whose business model will indeed be viable and sustainable in the long term.
Based on our assessment of current carbon exposure and strategy for future decarbonisation, we are encouraged by those companies that can play a key role in the climate transition.
The ‘overview effect’ prompted space travellers to look at the world in its entirety.
The climate transition should have the same effect on investors by helping to develop a planetary, multi-generational investment framework, and financing a sustainable world so that many more astronauts in future generations can admire the ‘overview effect’: our planet.
Petra Daroczi, investment analyst — ESG, fixed income at Aberdeen Standard Investments
