The Informer

Investment manager Hermes has hailed climate change as a “central theme” for its investors.

In its 2018 Carbon Report, the firm said that climate change was creating risks for the companies in which it invests.

But it also provides opportunities for businesses offering products and services that will help with the transition to a low-carbon economy, the report added.

The report noted there were “very few value-creating opportunities” for oil companies in a low-carbon economy.

Stranded assets

Saker Nusseibeh, Chief Executive at Hermes Investment Management, said: “The financial case for acting is becoming ever-clearer.

“If you have a decades-long time horizon, factors that are not seen as important over the short term become really crucial.

“If your factory is located on a riverbank and water levels rise; if your factory needs inputs that will be subject to a carbon price; if it is reliant on high-carbon technology, your company is going to be affected.”

> Download the report

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