The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Wednesday, 26 February

The 100 Billion Dollar Carbon Commitment - Malkin Mouths On Monster Deal

Planet First's Steve Malkin says that following a landmark UN agreement, carbon management has finally moved to priority status in the property sector following $100 billion carbon reduction commitment by institutional investors.

The UN Agreement to reduce the carbon footprint of $100 billion dollars of investment assets as reported recently in ThisWeekinFM (Click here to read story) really is a 'monster' of an agreement and a real game changer, writes Planet First's Steve Malkin. It will have more than significant impacts for the property sector and it will also be a rare occasion that words will have more impact than actions.

The announcement was made by the Portfolio Decarbonisation Coalition (PDC), which is a group of Europe’s largest institutional investors working in partnership with the UN Environment Programme’s Financial Initiative (UNEP FI). The PDC, by making this public commitment to reduce carbon emissions in their own portfolios, are sending a clear message to the market that institutional investors recognise that climate change is an unprecedented risk to global economic stability. 

Whilst decarbonising $100 billion of assets is certainly a large-scale carbon reduction, in this case I believe the words will be far more powerful than the action itself. The PDC commitment demonstrates how carbon management and climate change mitigation are inextricably and substantially linked to shareholder value. 

According the CDP, who are a part PDC, climate change leadership is a powerful corporate performance indicator for investors who are looking for superior quality management to deliver return on equity (ROE), earnings stability and dividend growth.  The recent CDP report Climate action and profitability is a valuable read in this context.

This is highly relevant to the property sector, which is responsible for an estimated 40% of the UK’s carbon emissions. Here the market pressures are combining with increasing regulation and legislation, including zero carbon homes, Green Deal, Energy Saving Opportunity Scheme and Minimum Energy performance Standards. 

Not only is carbon accounting and management an essential indicator of an organisation’s performance there is increasing urgency on reporting and reduction.  The PDC commitment has set an intermediate target for carbon reduction of December 2015, just over 12-months from now.

Urgency is a welcome addition to climate change reporting and reduction where it has been easy for organisations to prevaricate. An investor-led expectation of aggressive target setting will drive and accelerate change.

The timing could not be more pertinent. The World Meteorological Organisation reported in September the fastest increase in greenhouse gas emissions in nearly 30 years.  Now that the economic case for climate action and leadership has been made, perhaps we can look forward to an exciting period of innovation and change.

 

Article written by Steve Malkin

Share



Related Articles

Rain Stops Play But Lords Gives 100 Per Cent

New data released on February 7 reveals that recent storms and flooding caused more than £3.5 million worth of damage across 57 cricket clubs - why the focus on...

 Read Full Article
Learning How to Unite in Building Improvements

The Unite Students Group, a provider of 50,000 student accommodation units, in more than 140 properties, has joined forces with Heathrow, Carillion, Royal Bank of...

 Read Full Article
Historic Day for Climate Undermined by Lack of Big-boy Action

As 175 world leaders signed the Paris Agreement at the United Nations Headquarters on April 22 and over the weekend, Secretary-General Ban Ki-moon said the next critical...

 Read Full Article
Tree Huggers and Tree Planters Join Earth Day

Today (Fri 22) is the 46th anniversary of Earth Day a movement that continues to inspire, challenge ideas, ignite passion, and motivate people to action. However, the...

 Read Full Article
A Horse of Course a Green Kingdom for the Horse

Lloyds Bank Commercial Banking has launched a first of its kind - £1 Billion green lending fund for commercial property to incentivise and support clients to reduce...

 Read Full Article
Sticking the Boot in for Climate Action

On the eve of the opening in Paris of the United Nations climate change conference, widely known as COP21, Secretary-General Ban Ki-moon urged all countries and all...

 Read Full Article
Greenwich Set for New Maritime History

A new cruise liner terminal that will bring thousands of tourists to the capital every year was given the green light by the Mayor of London’s on Tuesday August...

 Read Full Article
Greenwich Set for New Maritime History

A new cruise liner terminal that will bring thousands of tourists to the capital every year was given the green light by the Mayor of London’s on Tuesday August...

 Read Full Article
Dutch Emissions Ruling Opens Door for Governments to be Brought to Book

This Wednesday (June 24) a district court of the Hague in the Netherlands ruled that the Dutch government was legally obliged to meet a 25% reduction in greenhouse gas...

 Read Full Article
Velvet Underground Waiting for the Man

Whilst on a tour of the USA, Mayor of London Johnson stopped-off in Boston to argue the case for five flyunders in London. Boston's own scheme is in operation but...

 Read Full Article