Download South Pole Company Presentation

The Climate Impact of the OSEBX Index – Summary
11 November 2014
Dr. Maximilian Horster, Partner, South Pole Group
Fredrik Fogde, Project Manager, South Pole Group
This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from South
Pole Carbon Asset Management Ltd. This material was used by South Pole Carbon Asset Management Ltd during an oral presentation; it is not a complete record of the discussion.
South Pole Group – Measuring and reducing impact
About us
• 2006: Incorporation in Zurich /
Switzerland
• 2014: present on all continents
• 110 carbon pros from 22 countries
• 250+ projects in over twenty-five
countries
• Swiss Social Entrepreneur of the Year
• 2011 to 2014: Best Project Developer
• 1’000+ corporate and public clients
Our impact for our clients
• 50 million+ tonnes of CO2 savings
• EUR 6bn renewable energy investments
• 35’000 Gwh renewable energy
• Numerous health and education benefits
• 20’000 new jobs in developing countries
• 17’000 hectares of forest saved
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1’000+ South Pole Group references:
Some Clients and Partners from the financial industry
NorSIF asked about the Climate Impact of the OSEBX
Alfred Berg
Argentum
Cultura Bank
Danske Capital
DNB
DNV GL
EY
Fellesordningen for
AFP
Finansdepartementet
Folketrygdfondet
Gjensidigestiftelsen
KLP
MP Pensjon
Nordea
Odin
OVF
Pensjonskasseforeningen
Skandiabanken
Sparebankstiftelsen DNB
Storebrand
Sustainalytics
The Climate Impact of OSEBX
Deliverables
• Findings Summary
• Data Analysis
• Screening Tool
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•
Investment Impact on the Agenda
•
The Business Case and Application
•
OSEBX Analysis
6
Every Euro invested either
finances or reverses Climate
Change
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Investors in the spotlight
“Investors (…) should increase transparency regarding greenhouse
gas emissions from the assets and businesses that they finance”.
UN Secretary-General Baan Ki-moon
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Politics closing in
“We urge the AP pension funds and
other institutional investors, as a first
step, to increase transparency and to
explore the possibilities for reporting the
CO2 emissions associated with their
investment portfolios.”
Peter Norman, Swedish Finance Market Minister,
August 2014
Page 9
Portfolio Decarbonisation Coalition (PDC)
Leading institutional
investors have joined
forces to substantially
reduce the carbon
footprint of US$100
billion of institutional
investment worldwide.
23. September 2014
at the UN Climate Summit 2014
Montreal Carbon Pledge
“US$ 3 trillion of portfolio transparency commitment in time for the
UN Climate Change Conference in Paris in December 2015”
“We need to put the Montréal
Carbon Pledge on steroids”.
Christina Figueres, Executive Secretary of
UNFCCC, 26. September 2014
•
Investment Impact on the Agenda
•
The Business Case and Application
•
OSEBX Analysis
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It makes financial sense: Climate Risks &
Opportunities of Investments
Source: CDP
Climate Impact Assessment & Action
South Pole Group
measures
the climate impact
of investments
Page 14
Investors manage
investment climate
impact and report to
stakeholders
•
Investment Impact on the Agenda
•
The Business Case and Application
•
OSEBX Analysis
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OSEBX Analysis
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Approach
• Climate Impact of investing into the Oslo Stock Index OSEBX
• Comparison to individual NorSIF members’ investments
• Recommendations
Source: South Pole
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OSEBX is relatively climate intense
• The OSEBX consists of 52 companies
• The overall market capitalisation is at about NOK 2 trillion
• NOK 1’000 invested into the OSEBX finances 40KG of CO2e
This is less than the STOXX 50 Index but over 4x more than the SIX PX Sweden.
Financed Emissions of Selected Indices per NOK 1'000
Index
Country
Kg of CO2e
SIX PX
Sweden
9
SMI
Switzerland
11
MSCI UK ALL CAP UK
25
FTSE All World
Global
33
OSEBX
Norway
40
STOXX 50
Europe
57
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Sector Analysis
The sectors Materials, Energy and Industrials account for 54% of the
weighting, but for over 90% of the financed emissions.
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Transparency of OSEBX
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Screening tool
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Output of screening tool: OSEBX comparison with
sample portfolio
• Investors input own portfolio data in screening tool
• Generate report showing how their portfolio measures up to
the OSEBX in terms of key quantitative indicators such as:
• total emissions
• Percentage of disclosing titles
• emissions intensity
*Table shows calculations based on fictive sample portfolio,
for illlustrative purposes only
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Attribution Analysis
Tool also shows how sector allocation and stock selection contribute to the
portfolio's under- og outperformance of the benchmark in terms of CO2
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OSEBX: Climate Impact Assessment
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Forward - looking Analysis
Increasing action in carbon management
Risk/ Opportunity Management
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Recommendations
Measure & Set Targets
• Measure the climate impact of your full portfolio
• Set reduction targets for yourself and your asset managers
Create Transparency
• Report your portfolio’s climate impact to your stakeholders
• Join the «Montreal Pledge»
Take Action
• Join the Portfolio Decarbonisation Coalition
• Engage with investees on disclosure and climate strategy
Join Force
• Leverage initiative for a public debate on investment climate impact
• Create Norwegian engagement initiative for Norwegian investees
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Example: Communicate
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Many thanks!
Maximilian Horster [email protected]
Fredrik Fogde [email protected]
+41 43 501 35 50