The Informer

Imperial College and Impax Asset Management have developed a tool to help investors capitalise on the low-carbon transition without sacrificing financial returns.

The Smart Carbon Portfolios model allocates assets based on the potential impact of carbon pricing on shares in fossil fuel companies.

Ian Simm, Chief Executive at Impax Asset Management, said: “Companies and investors are under increasing pressure to use forward-looking scenario analysis to assess their climate change risks."

“This research goes beyond the generic guidelines and demonstrates, in a practical way, that scenario analysis can be used not just to assess risk, but effectively manage it as well.”

‘The heat is on’

Charles Donovan, Director of the Centre for Climate Finance and Investment at Imperial College Business School, said: “For the oil and gas sector, the heat is on."

“In pulling investment from a range of oil and gas producers, Norway’s sovereign wealth fund sent a shot across the bow for the industry.

“Investors will need to place their bets, and soon.”

> Download Impax's Smart Carbon strategy