A forum of 71 U.K. local authority pension funds representing £175 billion ($226.6 billion) in assets released a report outlining how oil and gas companies can improve their value while at the same time improving the planet.
“Engaging for a Low Carbon Transition,” released by the Local Authority Pension Fund Forum and Carbon Tracker Initiative, a non-profit financial think tank, illustrates why moving to a low-carbon business model — based on an aim to stop global temperatures rising more than 2 degrees Celsius — will benefit these companies.
The report argues that this approach would deliver increased value to shareholders.
“LAPFF has long been concerned about the investment implications of carbon risk, engaging since 2001 with companies on disclosure and carbon management,” said an e-mail from a spokeswoman for PIRC Ltd., which is LAPFF's corporate governance consultant. “For LAPFF members, this report will be a valuable tool in preparing for engaging with oil and gas companies, and assessing their strategies and business models.”