Report: Climate change poses a significant risk to pension funds
According to a new report by the responsible investment UK charity ShareAction, climate change poses a significant financial risk with severe implications for pension funds and investors. The study, The Green Light Report: Resilient portfolios in an uncertain world, sets out both the case for pension funds to give attention to climate change, and the practical steps funds can take to manage the risks it presents such as developing an action plan with clear goals and taking up the investment opportunities arising from it. Louise Rouse, the director of engagement at ShareAction, said that extreme weather events and the growing volatility of food and fuel prices will “hit returns across entire portfolios in ways that are both dramatic and unpredictable.” The launch comes less than a week after a group of major investors, collectively worth over $3 trillion, called on fossil fuels firms to assess the future sustainability of their businesses in the face of the threats posed by climate change. (The Guardian; Blue & Green Tomorrow)
Environment
European environment ministers call for EU to adopt ambitious climate goals
13 European environment ministers have warned the EU to adopt ambitious energy and climate goals for 2030 or risk falling behind the rest of the world. The 13 ministers, who call themselves the Green Growth Group, said that environmental action need not clash with efforts to limit energy prices, arguing that some EU nations with high levels of renewable energy have relatively low energy prices and are also benefiting from exporting renewable technology. Connie Hedegaard, the EU Climate Commissioner, said that it was imperative that business help to spur debate at EU level, and warned that policy uncertainty otherwise could drag on for years, particularly in view of elections in the European Parliament and a change-over of Commissioners in 2014. Ms Hedegaard said that “my concern is that there are some organised interests that are too much advocating business as usual.” (Reuters)
Ethiopia launches Africa’s largest wind farm
Ethiopia has launched Africa’s largest wind farm, with the aim of diversifying electricity generation and helping the country to become a major regional energy exporter. The €210 million Ashegoda Wind Farm, which was built by the French firm Vergnet SA, is designed to generate more than 800 megawatts of energy. The prime minister of Ethiopia, Hailemariam Desalegn , said that “studies have proved that there is potential to harness abundant wind energy resources in every region of Ethiopia. We cannot maintain growth without utilising the energy sector.” At present, Ethiopia’s energy resources are almost completely derived from hydropower projects. Mihret Debebe, the CEO of the Ethiopian Electric Power Corporation, said that the wind farm “complements hydropower, which is seasonal. When you have a dry water season we have higher wind speed. There is harmony between the two sources of energy.” (Reuters)
Reporting
Leo Pharma to share clinical trial data
The Danish pharmaceutical company Leo Pharma has responded for calls for greater transparency in the industry by announcing that it will make clinical study reports dating back to 1990 public from next year. The firm will also set up a review board comprised of independent researchers and representatives from patient associations to assess requests for anonymised patient level data from company sponsored trials. Of the other pharmaceutical companies to commit to making trial data transparent, GlaxoSmithKline (GSK) is the only other firm to provide specific details on data sharing plans, which include the launch of an online system for researchers to request data. Boehringer Ingelheim has committed to sharing trial data but has so far failed to detail its intentions, while Roche has agreed to share data for its controversial Tamiflu drug with the non-profit Cochrane Collaboration, but has been reluctant to provide wider access. Geraldine Murphy, Leo Pharma’s UK managing director, said that the company “wanted to make sure we were not just talking the talk but walking the walk.” Leo Pharma has so far not followed GSK by signing up the UK AllTrials transparency campaign, launched earlier this year, but a spokesman said that it was “considering its options.”(PMLive; Pharmafile)
Policy
Business leaders to UK PM: Cutting environmental regulations is “shortsighted”
Chief executives from over 50 UK building companies have warned the UK prime minister, David Cameron, that it would be a mistake to cut green levies from energy bills. In a letter co-ordinated by the UK Green Building Council (UKGBC), firms including E.ON, Carillion and Willmott Dixon have urged the UK Government not to roll back schemes such as the Energy Company Obligation (ECO) while attempting to reduce consumers’ energy bills. This follows Mr Cameron’s announcement last week that he would be willing to cut environmental regulations in order to reduce household bills. Chief executives have argued that energy efficiency is the “only sure way” to protect households against rising bills in the long-term and that rolling back ECO, which is designed to improve the energy efficiency of vulnerable and low income households, would actually increase energy bills for these consumers. (Blue & Green Tomorrow; Edie)
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