Hyperion AM neutralises net climate impact
Hyperion Asset Management has announced it will neutralise its net climate impact by offsetting its historical emission since its inception in 1996 for which it partnered with environmental consultancy South Pole.
Hyperion’s managing director and chief investment officer, Mark Arnold, said he believed investors with direct and material exposures to fossil fuel-based energy businesses would underperform as there would be a major disruption from renewable energy generation, storage systems and electric vehicles which would force the companies to internalise environmental costs relating to climate change in the longer term.
“Looking ahead, we expect economic growth to remain lower for longer and believe that the role of fossil-fuel based businesses will substantially diminish over the next decade. Long-term investors who fail to recognise the economic imperative to decarbonise their portfolios will do so to their own detriment,” he said.
Hyperion, which currently manages $8.6 billion across three strategies, engaged South Pole to assist in the planning and implementation of its carbon credit strategy which would see it achieve South Pole’s ‘Climate Conscious’ label, a program which contributes to various initiatives both in Australia and abroad including EcoAustralia Biodiverse Tree Planting project.
“In our view, the single biggest structural headwind to the global economy and everyone’s general quality of life is the negative and worsening effects of climate change. Our portfolios are extremely carbon light, but we wanted to also ensure that Hyperion’s carbon footprint was being offset to minimise the negative net impact our business activities are making on the climate and the environment,” Arnold said.
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.