Climate change writing on the wall for investments

Andy Gregory of the Independent reports that climate breakdown could render investments held by millions of people “worthless”.

Investments and climate change

This warning is from the outgoing governor of the Bank of England Mark Carney.

England’s central bank has previously suggested that while £16tn of assets could be wiped out by climate change, companies at the forefront of efforts to curb emissions could be handsomely rewarded.
“There will be industries, sectors and firms that do very well during this process because they will be part of the solution,” he told The Guardian in October. “But there will also be ones that lag behind, and they will be punished.”1

Climate risk analyst Karl Mallon concludes in an article by Erica Alini of Global News

Policies and divestment

comments that data on exposure to flood risk is already driving decisions about whether to issue mortgages in some cases.

 Over time, Mallon sees areas where getting a mortgage will become very difficult. The risk for those properties is that they’ll become hard to sell and eventually decline in value, he added.2

The BlackRock company, in a report by Joanna Partridge said it intended to play an active role in solving the climate crisis.

BlackRock direction

A fundamental reshaping of finance may make continuing investment in fossil fuels less secure and may strand assets of the fossil fuel companies.

 The company said it intended to play an active role in solving the climate crisis: “BlackRock does not see itself as a passive observer in the low-carbon transition. We believe we have a significant responsibility – as a provider of index funds, as a fiduciary, and as a member of society – to play a constructive role in the transition.”3

CBC News and the Montreal Times report that 90% of Encana shareholders have approved a name change and the former Encana company's headquarters move to U.S. The Calgary-based company will be known as Ovintiv Inc.

Encana declaring itself American is a gut punch for Alberta. It says a corporate domicile in the United States will expose it to increasingly larger pools of investment in U.S. Index funds and passively managed accounts, as well as better align it with its U.S. peers.4

The winners and losers in investments based on energy are being sorted out by analysts of climate change.

References

1	(2019, December 30). Climate change could render assets 'worthless', Bank of .... Retrieved January 14, 2020, from https://www.independent.co.uk/environment/climate-change-finance-assets-worthless-mark-carney-bio-divestment-a9263861.html
2	(n.d.). What Australia's fires could mean for insurance and real estate .... Retrieved January 13, 2020, from https://globalnews.ca/news/6376312/australia-fires-home-insurance-mortgages-property-values/
3	(2020, January 14). BlackRock says climate crisis will now guide its investments .... Retrieved January 14, 2020, from https://www.theguardian.com/business/2020/jan/14/blackrock-says-climate-crisis-will-now-guide-its-investments
4	(2020, January 14). CBC News - MontrealTimes. Retrieved January 14, 2020, from https://www.montrealtimes.news/90-of-encana-shareholders-approve-name-change-companys-hq-move-to-u-s-cbc-news/