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Carbon Asset Risk

Fossil fuel companies are putting billions of investment dollars at risk each year by developing high-cost, high-carbon reserves that may never be burned. The Carbon Asset Risk Initiative (CAR) aims to prevent these fossil fuel companies from wasting investor capital by demonstrating how carbon risk poses an existential threat to their business models, accrues increasing levels of stranded assets, and puts trillions of capital expenditures at risk.

Carbon asset risk is an issue for all fossil fuel companies. The threat of climate change, carbon regulations and other market forces are shifting our economy to a low-carbon future. There's a clean energy transition under way – we already know the world needs to invest an additional $1 trillion per year in clean energy by 2030.

The CAR Initiative celebrated a significant milestone in 2016, with investors giving unprecedented voting support for climate 'stress-test' resolutions at the ExxonMobil and Chevron annual meetings. The resolutions, requesting that the companies stress test their business strategies against a scenario where climate change is limited to 2 degrees Celsius or less (the goal of the global climate agreement forged in Paris), received 38.2 percent shareholder support at the ExxonMobile meeting and 41 percent at the Chevron meeting, respectively.

We invite you to learn more about what is at stake, how leaders are pushing for action, and how you can get involved.

Aspects of Carbon Asset Risk

CAR box DEMAND CAR box CLIMATE ACTION

CAR box PHYSICAL RISKS CAR box CLEAN AIR

 

Shareholder Resolution Button 2 Portfolio Resilience Button

 

Investors wanting to get involved can join the Carbon Asset Risk Working Group, part of Ceres' Investor Network on Climate Risk (INCR).

Our work on carbon asset risk is produced in partnership with the Institutional Investors Group on Climate Change (IIGCC) and Carbon Tracker Initiative (CTI).

 

Fatih Final

 


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Company Snapshots
Here are some of the companies most vulnerable to CAR. Click to view a snapshot of their risks.

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