CLIMATE

CLIMATE IMPACT

Climate change is one of many environmental  externalities that companies will have to internalise in coming decades. One of the greatest risks, but also opportunities for companies that are prepared, is a decarbonised economy which is one of the most obvious and expected solutions to solve the challenge of climate change. As Panvestors we seek companies who are committed to reducing their carbon footprint in a measured, practical, impactful, realistic and financially sustainable manner. To ensure we can measure and monitor our portfolio companies progress, we look to the potential financial impact of their carbon reduction efforts, through measuring their Carbon Adjusted EPS, Carbon Adjusted EPS Growth and also Carbon Adjusted PE.

As Panvestors:

We expect environmental capital to be respected by our portfolio companies with appropriate commitments

We see carbon cost becoming an increasingly important component of a company's financials and intrinsic value

We expect our portfolio to reduce its net emissions in absolute terms

We engage with portfolio companies to understand their environmental issues, long term commitments, SMART targets and transition pathways

PORTFOLIO CLIMATE METRICS

PORTFOLIO
EMISSIONS
TARGETS
EMISSIONS
TRADING
SCHEME
SBTi
CARBON
EMISSIONS
PROGRESS
CARBON
EMISSIONS
REDUCTIONS
CARBON
ADJUSTED
PE

1. A specific, measurable, attainable, realistic, timely

2. Baseline year as indicated by individual holding in their CDP disclosures 

Directors' Duties and Climate Change - Avoiding 'Tragedy of the Horizons'

Climate change has been identified as the ‘tragedy of the horizons’, implying that most regulators, policy makers, corporates and corporate directors don’t consider it in their decisions as its impacts are beyond their personal or professional time horizon.

Founding Panvestor, Munib Madni based his Msc (Environmental Management) dissertation on the view that climate change is an issue that needs to be dealt with by corporates and their directors, now, and further assumes they would have done so if they could.

It then reviews any legal reasons for the inertia behind climate change decision making by directors, and looks for pathways allowing them to do so.

Finally, using recent climate change litigation experiences, it considers whether success or failure of litigation is encouraging (through fear) or discouraging directors (through successful defence), respectively.

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Panarchy Partners Pte. Ltd. (“Panarchy”) is a Singaporean fund management company registered with the Monetary Authority of Singapore. Panarchy Partners is not registered as an investment adviser in any other jurisdiction. Please do not access this website unless you are an accredited investor, qualified client, institutional investor, or otherwise satisfy applicable legal thresholds in your local jurisdiction, and then only if doing so would not otherwise violate the law in the country in which you reside. Nothing on this website is intended to be, nor should it be construed as, an offer to sell or a solicitation for the purchase or sale of any financial instrument.

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