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.
AUTHOR
Oksana Patron
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
