2016 ET CARBON RANKINGS REPORT

APPENDIX
59
References
1
Carbon Tracker (2015) Coal: Caught in the EU Utility Death Spiral.
Available at: http://www.carbontracker.org/report/eu_utilities/;
Randall, T. (2015) The Latest Sign That Coal Is Getting Killed.
Bloomberg July 13, 2015. Available at: http://www.bloomberg.
com/news/articles/2015-07-13/the-latest-sign-that-coal-isgetting-killed;
HSBC (2015) Stranded Assets, what next? Available
at: http://www.businessgreen.com/digital_assets/8779/hsbc_
Stranded_assets_what_next.pdf.
2
The Law Commission (2014) ‘Fiduciary Duties of Investment
Intermediaries:’ http://www.lawcom.gov.uk/wp-content/
uploads/2015/03/lc350_fiduciary_duties.pdf; Six Pump Court
Chambers (2016) ‘Ignoring climate risk risks liability for pension
fund trustees and fund managers:’ http://www.6pumpcourt.
co.uk/2016/07/ignoring-climate-risk-risks-liability-for-pensionfund-trustees-and-fund-managers-3/;
Center for International
Environmental Law (2016) ‘Fiduciary Duty, Divestment and Fossil
Fuels in an Era of Climate Risk:’ http://www.ciel.org/wp-content/
uploads/2016/09/Pensions-4Pagerv4.pdf
3
ET Index Research (2015) Special Report 01: The Emerging
Importance of Carbon Emission-Intensities and Scope 3 (Supply
Chain) Emissions in Equity Returns. Available at: http://etindex.
com/images/assets/ET_Index_Special_Report_01_Emerging_
Importance_of_Carbon_and_Scope_3_in_Equity_Returns.pdf
4
https://www.fsb-tcfd.org/publications/#
5
The fines exceeding $15 billion that Volkswagen has agreed to
pay for falsifying emissions related to use of their product are also
an example of the importance of value chain. Note though that
emissions Volkswagen falsely reported were not GHG emissions.
Nevertheless, the scale of the response to their falsification
of NOx emissions, indicates the potential future scale of the
response to false GHG emissions information.
6
Special Report 04: The Carbon Risk Factor (EMI – ‘Efficient Minus
Intensive’). Available at: http://etindex.com/images/assets/
ET_Index_Special_Report_04_The_Carbon_Risk_Factor.pdf
7
For a detailed list of disclosure rules by jurisdiction, see Phase I
Report of the Task Force on Cimate-Related Financial Disclosures:
https://www.fsb-tcfd.org/wp-content/uploads/2016/03/Phase_I_
Report_v15.pdf, at 42-43.
8
http://www.wri.org/blog/2015/12/cop21-qa-what-ghgemissions-neutrality-context-paris-agreement
9
Current levels of global carbon dioxide emissions are decreasing
annual market returns by an estimated 0.1% per year. This is a
very conservative estimate as it does not account for the effect of
greenhouse gases other than carbon dioxide. This drag on returns
is set to increase due to the increasingly nonlinear link between
emissions and an increasing global temperature (Bansal et al,
2016; Matthews et al, 2009; Myles et al, 2009; MacDougall et al,
2016; Leduc et al, 2016; Quéré et al, 2015; PBL NEAA, 2015).
10
Dietz et al. (2016) ‘Climate value at risk’ of global financial
assets:’ http://www.nature.com/nclimate/journal/vaop/ncurrent/
full/nclimate2972.html
11
Based on industry averages, the ET Carbon Rankings Universe
is estimated to emit roughly 9.5 billion tonnes of CO2e. The
European Commission estimates that total 2014 fossil fuel and
industrial emissions for the United States, European Union and
Canada to be 5.3, 3.4 and 0.6 billion tonnes CO2, respectively.
Olivier JGJ, Janssens-Maenhout G, Muntean, M & Peters JAHW
(2015) Trends in global CO2 emissions 2015 Report. The Hague:
PBL Netherlands Environmental Assessment Agency; Brussels:
Joint Research Centre. Available at: http://edgar.jrc.ec.europa.
eu/news_docs/jrc-2015-trends-in-global-co2-emissions-2015-
report-98184.pdf
12
ACCA (2011) The carbon we’re not counting. Available at: http://
www.accaglobal.com/content/dam/acca/global/PDF-technical/
climate-change/not_counting.pdf
13
CO2e is an abbreviation of ‘carbon dioxide equivalent’ and is
the internationally recognised measure of greenhouse emissions.
There are many types of greenhouse gases, but 6 such gases are
controlled by the Kyoto Protocol and the Paris Agreement. This
report refers to “carbon” and “greenhouse gas” interchangeably,
both referring to CO2e.
14
SASB (2016) Technical Bulletin on Climate Risk. Available at:
http://using.sasb.org/sasb-climate-risk-framework/
15
Clark, P (2015) Mark Carney warns investors face ‘huge’ climate
change losses. Financial Times September 30, 2015. Available
at: https://www.ft.com/content/622de3da-66e6-11e5-97d0-
1456a776a4f5
16
sciencebasedtargets.org/companies-taking-action/
17
Wigglesworth, R & Foley, S (2016) Active asset managers
knocked by shift to passive strategies FTfm April 16, 2016.
Available at: https://www.ft.com/content/2e975946-fdbf-11e5-
b5f5-070dca6d0a0d; Mooney, A (2016) Passive funds grow 230%
to $6trn FTfm May 29 2016 Available at https://www.ft.com/
content/2552ce62-2400-11e6-aa98-db1e01fabc0c
18
Marriage, M (2016) 86% of active equity funds underperform.
FTfm March 20, 2016. Available at: https://www.ft.com/content/
e555d83a-ed28-11e5-888e-2eadd5fbc4a4
19
Fernyhough, J (2016) Vanguard and BlackRock branded
‘hypocritical’ FTAdvisor 6 September 2016. Available at: https://
www.ftadviser.com/2016/09/06/investments/vanguard-andblackrock-branded-hypocritical-uIBVgC0QmE2gNpc5jwF90M/
article.html
20
Bloomberg, ET Index Research calculations.
21
PwC (2016) Low Carbon Economy Index 2016. Avaialble at:
http://www.pwc.co.uk/services/sustainability-climate-change/
insights/low-carbon-economy-index.html
22
Moody’s (2016) Auto sector faces rising credit risks due to
carbon transition. Available at: https://www.moodys.com/
research/Moodys-Auto-sector-faces-rising-credit-risks-dueto-carbon--PR_354984;
IIGCC (2016) Investor Expectations of
Automotive Companies. Available at: http://www.iigcc.org/
files/publication-files/IIGCC_2016_Auto_report_v13_Web.pdf;
Taylor, E (2016) German push to ban combustion-engine cars
by 2030 wins support Reuters October 8, 2016. Available at:
http://www.reuters.com/article/us-autos-emissions-germanyidUSKCN1280G7
23
Department of Justice ‘Volkswagen to Spend Up to $14.7
Billion to Settle Allegations of Cheating Emissions Tests and
Deceiving Customers on 2.0 Liter Diesel Vehicles’ (28 06 2016):
https://www.justice.gov/opa/pr/volkswagen-spend-147-billionsettle-allegations-cheating-emissions-tests-and-deceiving;
‘VW
Engineer Pleads Guilty in Emissions-Cheating Scandal’ (09 09
2016): http://www.wsj.com/articles/former-vw-engineer-to-pleadguilty-in-emissions-cheating-scandal-1473433341.
24
IEA (2016) IEA releases Oil Market Report for September.
Available at: https://www.iea.org/newsroom/news/2016/
september/iea-releases-oil-market-report-for-september.htm;
Carbon Tracker (2015) Fossil fuel sector in denial over demand
destruction. Available at: http://www.carbontracker.org/in-themedia/fossil-fuel-sector-in-denial-over-demand-destruction/
25
ACCA (2011) The carbon we’re not counting. Available at: http://
www.accaglobal.com/content/dam/acca/global/PDF-technical/
climate-change/not_counting.pdf
2016 CARBON RANKINGS REPORT
ET INDEX RESEARCH