What relevance does the carbon footprint have for traditional investors?
We are basing our models on the assumption that further global warming will result in more restrictive measures and regulations with regard to the emission of greenhouse gases. The taxation of emitted greenhouse gases will affect those companies most severely that have not restructured their production processes efficiently enough within their respective sector. Therefore, it definitely makes sense for long-term investors to monitor the carbon footprint of their funds.
Montreal Carbon Pledge
The Montréal Carbon Pledge Agreement was launched on September 25, 2014 at the "PRI in Person" meeting. This initiative is supported by PRI (Principles for Responsible Investment) and UNEP FI (United Nations Environment Program Finance Initiative). The Montréal Carbon Pledge seeks to create greater transparency in the carbon footprint of investment portfolios, and in the long run also aims to reduce it. Erste Asset Management has become the first investment company in Austria to sign the Montréal Carbon Pledge.
By signing the agreement, investors are committed to measuring and publishing the carbon footprint of their portfolio on an annual basis.
For more information, click here.