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New Report on Risks and Opportunities of the Low Carbon Transition for Investors Across All Industry Sectors

Dernière mise à jour: octobre 21, 2021

BAD HOMBURG/ZÜRICH (9 November 2017) – Meeting the 2-degree Celsius target set out in the Paris Climate Accord in 2015 will have a significant impact on investors and the sectors they invest in, according to a new report by the FERI Cognitive Finance Institute, a private non-commercial research initiative of FERI, conducted in cooperation with ISS-Ethix Climate Solutions, a unit of Institutional Shareholder Services Inc. (ISS).

“This report provides investors with an overview of risks and opportunities across all sectors in relation to a low carbon transition,” said Dr. Kevin Schaefers, Co-Founder, FERI Cognitive Finance Institute. “The report also provides an accessible summary of current discussions in this area, including drivers of the transition and potential pathways for actively managing it from the perspective of a financial institution.”

Progress in key technologies needed for the low-carbon transition has so far been insufficient, with many sectors currently not having developed or not deployed the necessary technologies. Key sectors responsible for a high share of direct emissions are electricity and heat production (25%), AFOLU (24%), industry (21%), transport (14%) and buildings (6.4%). Only a minority of companies in these sectors of the sample universe report their emissions, which can be considered as the first step to managing them.

“Climate change and decarbonisation are having wide-ranging impacts on all industry sectors, but these impacts will vary in their severity, duration and imminence,” said Dr. Maximilian Horster, Head of ISS-Ethix Climate Solutions. “Investors need to monitor all sectors, focusing on those most strongly affected.”

The report highlights that as the timelines associated with forecasts become current, different developments will shape the situation investors face. These include the discrepancy between decarbonisation commitments and required actions to achieve the transition; the various structures of a low carbon economy and reliance on different technologies; and the continued subsidies for fossil fuels in many markets. Three underlying opportunities exist to address low-carbon objectives: improving energy efficiency, reducing carbon intensity of electricity and end-use of energy.

An abstract of the report can be viewed here and the full report will be launched at an event for investors in Bonn on 15 November, timed to coincide with COP23, Two Years After Paris: Are Investors on Track? Journalists are welcome to attend and should register here.

About FERI Cognitive Finance Institute
The FERI Cognitive Finance Institute is the strategic research center and creative think tank of the FERI Group, with a clear focus on innovative analysis and development methods for long-term aspects of business and industry Capital Market Research. The institute uses the latest findings from areas such as behavioral economics, complexity theory and cognitive science. Behind the FERI Cognitive Finance Institute stands an experienced team with interdisciplinary academic background, long-term research practice and specific focus knowledge. The institute also has access to a powerful network of external experts. The institute was founded in 2016 by Dr. Heinz-Werner Rapp, CEO of FERI AG and CIO of the FERI Group. FERI has been operating as an independent investment firm since 1987 with a focus on investment research, Investment Management and Investment Consulting. The name FERI stands for “Financial & Economic Research International”. For more information, please visit https://www.feri-institut.de/en/.

About ISS
Founded in 1985 as Institutional Shareholder Services Inc., ISS is the world’s leading provider of corporate governance and responsible investment (RI) solutions for asset owners, asset managers, hedge funds, and asset service providers. ISS’ solutions include: objective governance research and recommendations; RI data, analytics, advisory, and research; end-to-end proxy voting and distribution solutions; turnkey securities class-action claims management (provided by Securities Class Action Services, LLC); and reliable global governance data and modeling tools. Clients rely on ISS’ expertise to help them make informed corporate governance and responsible investment decisions. For more information, please visit www.issgovernance.com.

Pierre Perrin-Monlouis
Pierre Perrin-Monlouis
Fondateur de Rente et Patrimoine (cabinet de gestion de patrimoine), Pierre Perrin-Monlouis est un analyste et trader pour compte propre. Il vous fait profiter de son expérience en trading grâce à ses analyses financières et décrypte pour vous les actualités des marchés. Son approche globale des marchés combine à la fois l'analyse technique et l'analyse fondamentale sur l'ensemble des marchés : crypto, forex, actions et matières premières.
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