The climate change storm clouds are threatening carbon Value-at-Risk – asset managers beware

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Just because, today, a carbon tax is either non-existent, toothless or unenforcible, don’t imagine that one will never be created, given teeth and enforced. The climate change storm is already rumbling and its pressure building steadily towards this inevitability – it may be next year, the year after, or the year after that. But prudent […]

The climate change storm clouds are threatening carbon Value-at-Risk – asset managers beware was last modified: July 28th, 2017 by Bruce Menzies
oil derrick

Stranded assets: do they have a future?

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For a classic example of stranded assets, look no further than the ‘proved reserves’ i.e. oil in the ground, which feature in the annual reports of major oil companies.  Whilst adding apparent value to the corporate share price, their true worth is at significant risk from carbon liability. Why? Because the days of emitting carbon dioxide […]

Stranded assets: do they have a future? was last modified: August 10th, 2017 by Bruce Menzies

Are we CLEAR? Carbon Liability to Earnings and Assets Ratios are here

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What is “Carbon Liability to Earnings and Assets Ratio” Carbon Liability to Earnings Ratio (CLEAR) is the ratio of a company’s direct greenhouse gas (GHG) emissions liability to company earnings.   It is calculated as: CLEAR = (Direct GHG emissions x Carbon Price) / Earnings   When calculating, it is preferable to use an Earnings before interest, tax, depreciation […]

Are we CLEAR? Carbon Liability to Earnings and Assets Ratios are here was last modified: August 8th, 2017 by Edward Coe