“Australian investors begin to hedge carbon risk”: RE New Economy.

Giles Parkinson: “The move towards low-carbon investment portfolios has taken a small but significant step in Australia, with Industry Funds Management launching a new low-carbon, environmental, social and governance portfolio strategy, believed to be the first of its type to factor emissions intensity into an Australian investment product. ….this is believed to the first (in Australia) to offer a broad index portfolio that offers a hedge against carbon risk. It will certainly not be the last.” The first mandate is for $100m: a good start. “Nathan Fabian, CEO of the Investor Group on Climate Change, a group whose members manage more than $700 billion of funds, says …..the fund will allow an investor to start to hedge the risk of a “carbon bubble,” a term that has now become commonplace in Europe, particularly since the release of a report by the Potsdam Institute last year that highlighted the risk of a “carbon bubble” if the world finally took action, rather than talking about it, on limiting global warming to 2°C.”