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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
• 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
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This document was uploaded on 03/29/2014.
- Spring '14