Investors urge environmental impact assessment

News Article - Monday, September 15, 2008

filed under: Industry

An open letter from major investors in the UK, USA and Canada has urged the US securities and exchange commission (SEC) to require energy companies to begin accounting for carbon emissions.

The group wants extra carbon emissions reporting for businesses in energy, including the disclosure of reserves with higher than average emissions associated with their extraction, production and combustion.

Companies in the group include London-based F&C Asset Management and the California Public Employees' Retirement System, as well as environmental and non-profit organisations.

The letter said: "We urge the SEC to pay more careful attention to the implications of climate change and carbon-related regulations ... since the risks and challenges posed are likely to grow rapidly in the coming years, with significant consequences for the oil and gas industries.

"We are concerned that climate change, and policies adopted to combat greenhouse gas emissions, could render certain assets - particularly those with high carbon intensity - uneconomic."

It was argued that not every barrel of oil has the same carbon emissions measurement, with techniques required by some sources more energy-intensive than others.

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