CLOSE

We permit the publication of our auditors’ report, provided the report is published in full only and is accompanied by the full financial statements to which our auditors’ report relates, and is only published on an access-controlled page on your website https://www.hermes-investment.com, to enable users to verify that an auditors’ report by independent accountants has been commissioned by the directors and issued. Such permission to publish is given by us without accepting or assuming any responsibility or liability to any third party users save where we have agreed terms with them in writing.

Our consent is given on condition that before any third party accesses our auditors’ report via the webpage they first document their agreement to the following terms of access to our report via a click-through webpage with an 'I accept' button. The terms to be included on your website are as follows:

I accept and agree for and on behalf of myself and the Trust I represent (each a "recipient") that:

  1. PricewaterhouseCoopers LLP (“PwC”) accepts no liability (including liability for negligence) to each recipient in relation to PwC’s report. The report is provided to each recipient for information purposes only. If a recipient relies on PwC’s report, it does so entirely at its own risk;
  2. No recipient will bring a claim against PwC which relates to the access to the report by a recipient;
  3. Neither PwC’s report, nor information obtained from it, may be made available to anyone else without PwC’s prior written consent, except where required by law or regulation; and
  4. PwC’s report was prepared with Hermes Property Unit Trust's interests in mind. It was not prepared with any recipient's interests in mind or for its use. PwC’s report is not a substitute for any enquiries that a recipient should make. The financial statements are as at 25 March 2016, and thus PwC’s auditors’ report is based on historical information. Any projection of such information or PwC’s opinion thereon to future periods is subject to the risk that changes may occur after the reports are issued and the description of controls may no longer accurately portray the system of internal control. For these reasons, such projection of information to future periods would be inappropriate.
  5. PwC will be entitled to the benefit of and to enforce these terms.
I accept
CLOSE

1. Select your country

  • United Kingdom
  • Austria
  • Australia
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Iceland
  • Ireland
  • Italy
  • Luxembourg
  • Netherlands
  • Norway
  • Singapore
  • Spain
  • Sweden
  • Switzerland
  • USA
  • Other

2. Select your investor type

  • Financial Advisor
  • Discretionary Investment Manager
  • Wealth Manager
  • Family Office
  • Institutional Investor
  • Investment Consultant
  • Charity, Foundation & Endowment Investor
  • Retail Investor
  • Press
  • None of the above

3. Accept our terms and conditions

Proceed

The Hermes Investment Management website uses cookies to remember your preferences and help us improve the site.
By proceeding, you agree to cookies being placed on your computer.
Read our privacy and cookie policy.

2015 - The year of climate change

Home / Hermes EOS Blog / 2015 – The year of climate change

Victoria Barron,
26 September 2014
Environment

 

After 2,000 global rallies and a star-studded UN Climate Change Summit in New York, the climate change agenda has once again raised its head in preparation for 2015. The year will once more see policy-makers trying to achieve a legally binding and universal agreement that will keep global carbon emissions at a level which ensures global warming remains below 2°C.

Despite the lack of agreements, this year’s summit saw the biggest gathering of heads of government to date, which is important to note, as over the next six months every country in the world has to publish a new set of climate targets, as part of the international negotiations towards an agreement in 2015. In addition, some of the speeches reflected new policy commitments, the most notable coming from the world’s biggest carbon emitter China, which committed to publishing a date for when it expects its greenhouse gas emissions to peak.

The world’s emissions trajectory remains poised to increase global temperatures by 3.2°C to 5.4°C in 2100, according to a recent Intergovernmental Panel on Climate Change (IPCC) report. We are predicted to reach a temperature rise of more than 2°C in the next 30 years, which increases the likelihood of extreme and irreversible weather events. At 4°C, the World Bank has predicted the inundation of coastal cities, increasing risks for food production, unprecedented heat waves, substantially exacerbated water scarcity, increased frequency of high-intensity tropical cyclones and the irreversible loss of biodiversity.

To keep global warming to below 2°C, the global economy needs to cut carbon intensity by 6% every year between now and 2100. However, given that current decarbonisation rates are only 0.7% a year and even doubling this rate would lead to a scenario of over 4°C warming by 2100, realistically, time is running out.

At present, the power and industry sectors combined have the biggest carbon footprint, accounting for about 60% of total CO2 emissions, according to the IPCC. With this in mind, to remain below 2°C, 60-80% of today’s coal, oil and gas listed company reserves will have to become unburnable and therefore “stranded.”

Hermes EOS has sought to address concerns in relation to carbon and stranded assets. Through theCarbon Asset Risk Initiative, a project by the Institutional Investors Group on Climate Change (IIGCC) and sustainability leadership organisation Ceres, we have engaged with over 50 global, carbon-intensive companies and continue to work with them to understand and address their exposure to climate change risks.

We have also undertaken a range of public policy work, which included joining some 340 global investors representing $24 trillion in assets to sign the biggest ever global investor statement on climate change, calling on governments to take action that supports investment in clean energy and climate solutions. On top of that, we have asked governments to support a new global agreement at the 2015 UN Climate Change Conference talks in Paris, in addition to national and regional policy measures to reduce carbon emissions. Earlier this year, we attended a gathering of climate finance specialists, which included the chair of the UN Framework Convention on Climate Change (UNFCCC), to discuss investment solutions that will bridge the gap between the finance community and climate change solutions.

In 2015, we will further intensify our engagement efforts on all climate change related issues. We intend to continue supporting movement on public policy and engaging with companies on their specific climate change risks. In addition, we plan to widen our understanding of what renewable technologies are becoming more economically viable and thus appealing to investors.

Share this post:

Find posts by author

  • Bill Mackenzie
  • Bruce Duguid
  • Christine Chow
  • Colin Melvin – Global Head of Stewardship
  • Darren Brady
  • Dominic Burke
  • Emma Hunt
  • Freddie Woolfe
  • Hans-Christoph Hirt
  • Jaime Gornsztejn
  • Jennifer Walmsley
  • Jon Brager
  • Justine Lutterodt
  • Karin Ri
  • Leon Kamhi – Head of Responsibility at Hermes investment Management
  • Louise Dudley
  • Mais Hayek
  • Manuel Isaza
  • Mark Sherlock, CFA
  • Matthew Doyle
  • Maxine Wille
  • Michael Russell, CFA
  • Naheeda Rashid
  • Natacha Dimitrijevic
  • Nina Rehrbein
  • Nina Röhrbein
  • Rochelle Giugni
  • Roland Bosch
  • Sachi Suzuki
  • Saker Nusseibeh
  • Tim Goodman
  • Victoria Barron

Find posts by category

  • Select category
  • environment