Systemic mis-pricing of carbon risk

Several NSFM supporters are taking part in a forthcoming event in London which promises to be thought-provoking.

KPMG and Carbon Tracker would like to invite you to participate in this forthcoming event:

Title: Unburnable Carbon – Systemic risk in the capital markets?

Date / Location: 8.30 – 10.30am, 15 July 2011, KPMG, 15 Canada Square, Canary Wharf, London, E14 5GL

Summary: Recent months have seen major transfers to the world’s stock exchanges in terms of coal, oil and gas companies. The world’s financial markets continue to raise capital for the extraction of fossil fuels despite increasing signs from scientists, Government and lobby groups that we cannot burn all of the known reserves of fossil fuels if we are to stay below the goal of a 2 degree temperature rise in global temperatures. As Mark Campanale, Director of Carbon Tracker puts it: "This overcapitalisation of extractives companies - what we call 'unburnable carbon' - puts investors at risk of the resulting asset inflation bubble bursting."

 

KPMG and Carbon Tracker are pleased to host a session to discuss potential implications of this debate:

•             Have the stock markets overcapitalised coal, oil and gas, meaning that unburnable carbon is listed on the exchanges?

•             Does this pose a systemic risk to the markets and universal owners?

•             What do regulators need to do to reallocate capital to a low carbon future?

•             How should reserves, emissions and climate risk be treated together in integrated reporting?

•             What other information do investors need to assess their exposure to the risk?

 

Agenda:

Speakers / Panellists:

8.00 - Coffee and breakfast

8.30 - 9.15  - Background

•             Welcome – Vincent Neate, KPMG

•             Introduction - Jeremy Leggett, Chairman, Carbon Tracker

•             Presentation of Findings –James Leaton, Carbon Tracker

9.15 - 10.15  - Panel Discussion

•             Nick Robins, Head of the HSBC Climate Change Centre of Excellence

•             Lois Guthrie, Executive Director, Climate Standards Disclosure Board

•             Paul Dickinson, Executive Chairman, Carbon Disclosure Project

•             Mark Mansley, Rathbones - Advisor to the Environment Agency Pension Fund

10.15 – Closing remarks

 

Topics for discussion:

•             What does this mean for London as a fossil fuel financial centre?

•             The IPO process – who is responsible for helping transfer carbon to markets?

•             Scope 3 emissions and integrated reporting – how do we get to the material risks?

•             Reserves valuation – Are proven reserves contingent upon going beyond 2 degrees?

•             The role of the regulator - what should the FSA, SEC, etc be doing to align markets with climate change targets?

•             Investor information – how do you know which reserves are more likely to be burnt?

•             What should next steps be?

 

If you would like to attend this event,  RSVP to jleaton@carbontracker.org