Innovest examined more than 800 companies in high

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Unformatted text preview: ge the associated risks and opportunities, and companies’ financial performance. Innovest examined more than 800 companies in high impact sectors (those sectors most exposed to carbon risk) and across regions of the world to compare carbon “leaders” to carbon “laggards.” Among the study’s key findings: • Companies’ risk exposure to climate change varies widely, both between and even within different indus­ try sectors and geographic regions. • Companies with the most robust climate risk man­ agement architecture and ability to seize competitive opportunities on the upside have tended to outperform their same-sector peers financially over the past three years. • The “Carbon Beta© premium” for leading companies appears to be growing larger over time, as regulatory regimes tighten around the world. 4 Low, J. and Kalafut, P.C. (2002). Invisible Advantage: How Intangibles Are Driving Business Performance. Perseus Books Group. Business Guide to 4 A .S. EPA Climate Partnership Programs U INNOVEST Analysis: Carbon BETA Leaders and Laggards Globally5 120% 100% Total Return 80% 60% 40% 20% 0% -20% Jun2004 Sep2004 Dec2004 Mar2005 Differen...
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This document was uploaded on 03/29/2014.

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