Thursday, October 13, 2016

Investors Threaten Car Industry on Climate

Car manufacturers warned they must address climate change by switching to low-emission models − or face a sell-off of their shares.

Low-carbon vehicles such as Tesla’s pump in electric instead of petrol. (Image Credit: Windell Oskay via Flickr) Click to Enlarge.
Major investors have warned the automotive industry it needs to accelerate its readiness for a low-carbon world if it is to retain their support and prosper.

Vehicle makers must put climate change specialists on their boards, engage better with policy-makers, and invest more heavily in low-emission cars, says a network of 250 global investors with assets of more than $24trillion.

The demands come in a new report, Investor Expectations of Automotive Companies, published this week by the Institutional Investors Group on Climate Change (IIGCC).

“Long-term investors want to ensure that automotive companies are prepared for the challenges stemming from climate change, new technologies, changing policies and shifts in demand caused by global trends,” says Dr Hans-Christoph Hirt, co-head of investment house Hermes EOS, a member of the IGCC.

“Investors expect the industry to embark upon a smoother route to future prosperity by developing and implementing long-term business strategies that are resilient to climate change and resulting regulatory shifts.”

Read more at Investors Threaten Car Industry on Climate

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