Authors
Lise Moret and Pauline Llandric
According to a Ceres survey over 60% of investors claim they integrate regulatory carbon risk into their investment considerations, but only 20% claim to take carbon risk directly into account in their valuation models. The uncertainty existing regarding government involvement in fighting climate change on the global scale, the limited information communicated by companies about their carbon intensities and the laissez fare behaviour of asset managers all hinder the internalisation of carbon risk by the financial community. AXA analyses the carbon risk impact for investors on both the European and UK markets.