ESG Matters

This is why investors want financial regulators to tackle climate risk

Epoch ESG Analyst Ravi Varghese discusses the risks of climate change over the long term and the responsibility of the U.S. government to begin to work now in order to avoid catastrophic financial fallout, as has been seen with the current pandemic. Ceres, a Boston-based sustainability organization recently published a report urging  financial regulators to[]

The Climate Debt: What the West Owes the Rest

Attention is rightly focused on creating vaccines and measures to halt the spread of COVID-19. There also remains an imperative to mitigate the effects of climate change not just because of the clear links between COVID-19’s impact on humans where air pollution is high. Mohamed Adow identifies challenges in building a consensus to tackle the[]

Embracing Carbon Pricing

The architects of the “Baker-Shultz Carbon Dividends Plan,” first proposed in 2017, address what they see as the complete absence of domestic and global approach to global warming. The main features of the plan are: a carbon fee of $40 per ton which escalates given certain conditions; revenues generated are returned to families; regulatory simplification,[]

ESG investing a “complete fraud”?

Mr. Palihapitiya speaks to a couple of important concerns: he believes ESG is great marketing for banks and asset managers, and he’s not convinced about the timeliness of outcomes through activity by asset managers in particular. Ok, there must be some doubt about the willingness of banks to support green bond issuance while providing finance[]

Physical Risk, Fiscal Risk?

As Australia reckons with a devastating series of bushfires, the consequences of the disaster are still unfolding. Tragically, at least 28 people have lost their lives along with more than 1 billion animals. At least 17.9 million acres have burned, which, astoundingly, is almost the same size as South Korea. The economic impacts, meanwhile, are[]

Something is Right in the State of Denmark

Something is right in the state of Denmark – at least when it comes to climate policy. In this interview with Columbia University’s Bill Loveless, Dan Jorgenson, Denmark’s Minister for Climate, Energy and Utilities, describes the country’s wildly ambitious plan to reduce CO2 emissions by 70% by 2030. Some of their plans may seem fanciful. One idea,[]

Rising Sea Levels

This Economist article illustrates the consequences of rising sea levels. The science is simple enough: oceans cover 70% of the Earth’s surface but this number is rising because of global warming. Millions of people are vulnerable, and it is estimated the damage to coastal cities alone could be $1tn per annum by 2050. If the[]

Can a Responsible Investor Own Fossil Fuel Equities?

Here’s a surprising fact: while the spot price of crude oil has rallied more than 70% from the lows of February 2016, fossil fuel equities have barely budged. The XOP ETF, for example, which provides exposure to the oil & gas production and refining industries, is down roughly 12% over the same period. Investors’ reluctance[]

“The risk for climate change is exploding.”

“The risk for climate change is exploding.” So says Robert Litterman in this interview. Litterman, most notably associated with global asset allocation modelling also served as an economist at the Fed in the 1980’s. His crucial insight: “We’re not pricing climate risk because of the expected outcome…There is tremendous uncertainty about the future.” Thus carbon[]