How companies manage carbon risk

Companies such as Siemens and Peugeot are managing carbon risk more effectively by reducing the reliance of their products and services on fossil fuels

Jon Hale 5 February, 2019 | 6:00PM

Last week we looked at why investors should look closely at how climate change impacts investment returns.

Companies managing carbon risk more effectively are reducing the reliance of their products and services on fossil fuels and placing a greater emphasis on developing ‘greener’ products and services. The management assessment includes carbon-reduction and overall environmental management policies and systems, considers a company’s track record of reducing carbon intensity. This analysis also includes carbon-reduction goals for products, design and development of sustainable products.

Here are some global examples from energy-intensive industries:

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alcoa Corp16.55 USD3.57

About Author

Jon Hale

Jon Hale  Jon Hale, Ph.D., CFA, is the head of sustainability research for Morningstar.