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 4 February, 2019 | 9:54AM
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Last week we looked at why investors should look closely at how companies manage “carbon risk”, the transition away from fossil fuels to renewables.

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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Alcoa Corp48.83 USD-1.17
Kyushu Electric Power Co Inc870.00 JPY0.23
Red Electrica Corporacion SA17.10 EUR0.00Rating
Siemens AG149.52 EUR-0.17Rating
Stellantis NV16.81 EUR-3.45Rating
TotalEnergies SE38.39 EUR-0.85Rating

About Author

Jon Hale  Jon Hale is a consultant with Morningstar Institutional Investment Consulting.

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