
EDHECinfra Answers Stuart Kirk: Climate Risk Matters for Long-Term Investors
Press Release – June 1, 2022
EDHECinfra Answers Stuart Kirk: Climate Risk Matters for Long-Term Investors
EDHECinfra reacts to Stuart Kirk's remarks on climate change
In an open letter to Stuart Kirk, the now-suspended head of responsible investing at HSBC Asset Management, Noël Amenc, associate professor at EDHEC Business School and Frédéric Blanc-Brude, director of the EDHEC Infrastructure Institute, express their dismay at the lack of science behind Mr Kirk’s recent very public claim that “investors need not worry about climate change.” Telling hard truth to a difficult audience is one thing but spreading fake truths to sound clever is all hubris and no brain.
Not only did Mr Kirk rely on dubious statistical methods to make his point that the stock market keeps rising as bad climate news becomes more frequent, but he also shows a remarkable absence of understanding of finance and how markets work. Markets do not process information that they do not have, and climate models and scenarios are not yet telling us what we need to know to understand the impact of climate risk on asset prices. This is why investors are increasingly demanding access to non-financial data about climate risks.
Mr Kirk considered that climate risks will be realised in the long term and probably with a fairly limited average aggregate loss given the offsetting of climate gains and losses. So, for a bank like HSBC that has a short-term and well-diversified balance sheet, there is not real point in him spending time on a subject that has no large impact on this balance sheet. This analysis shows unfortunately that Mr Kirk has not understood the very essence of his mission. As the head of responsible investing at a preeminent asset management firm, Mr Kirk is in charge not of his own risks or of the bank's risks, but of the risks of his clients. HSBC AM’s clients are longer-term investors than HSBC, because they have long-term liabilities like pensions and life insurance. For them, robust liability-hedging is at the core of what asset management should be all about. This liability-hedging objective results notably in investments in real assets that are not easy to diversify and are therefore very strongly exposed to climate risk.
Meanwhile he proposes without due care that the consequences of climate change can be summarised in an aggregate and limited loss of GDP, thereby presenting a morally dubious equivalence between the enormous cost that is likely to be borne by some people and nations, and the benefits of winners, who in principle could adapt to the irreversible and chaotic disruption of the planet’s climatic system. Maybe he does not care that Africa, Asia, and Latin America will take a beating and lose many of the development gains they achieved in the past century. For Mr Kirk, 2050 could be the new 1850.
Responsible investors, beyond the losses incurred in their portfolio due to climate risk, also worry about the impact of their investments on the climate and their capacity to participate in an undisputed goal of limiting global warming, which is threatening our civilisation. They care not only about Miami, but also about Mexico, Bangladesh or Venice being under water.
Many journalists and even politicians have expressed concern about Mr Kirk's suspension by HSBC AM, arguing that free speech is important in the public debate. We sincerely believe that they are missing the point. Mr Kirk did not enter the debate as a journalist -- who should be free to make any kind of comments as long as they have solid sources -- but as a high-level representative of a company that, through him, wishes to take its share in serving investors who are concerned about investing responsibly. What could be more normal than suspending him from a function that he does not really wish to perform?
Consult a copy of the open letter to Stuart Kirk.
About EDHEC Infrastructure Institute:
EDHECinfra® is a venture of EDHEC Business School and a provider of indices and analytics for the infrastructure investment universe. Because the majority of infrastructure assets are not publicly traded, there has traditionally been a vast knowledge gap when it comes to gauging the prices of these assets and their evolution. We are closing that gap with analytics and calculated indexes that already cover 25 countries representing an investable universe of 7,000 companies. We are based in Singapore and London. Visit edhec.infrastructure.institute.
EDHECinfra maintains the infraMetrics® platform: an online information system that gives access to key market indices including the infra300® and infra100® series. InfraMetrics also includes a wealth of valuation data and analytics, risk metrics, a fund strategy analysis tool providing robust performance quartiles for any segment, strategy or vintage, and peer group analyses allowing investors to compare themselves against comparable segments of the market.
To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
Iveco Group signs a 150 million euro term loan facility with Cassa Depositi e Prestiti to support investments in research, development and innovation11.6.2024 12:00:00 CEST | Press release
Turin, 11th June 2024. Iveco Group N.V. (EXM: IVG), a global automotive leader active in the Commercial & Specialty Vehicles, Powertrain and related Financial Services arenas, has successfully signed a term loan facility of 150 million euros with Cassa Depositi e Prestiti (CDP), for the creation of new projects in Italy dedicated to research, development and innovation. In detail, through the resources made available by CDP, Iveco Group will develop innovative technologies and architectures in the field of electric propulsion and further develop solutions for autonomous driving, digitalisation and vehicle connectivity aimed at increasing efficiency, safety, driving comfort and productivity. The financed investments, which will have a 5-year amortising profile, will be made by Iveco Group in Italy by the end of 2025. Iveco Group N.V. (EXM: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The eight brands are each a
DSV, 1115 - SHARE BUYBACK IN DSV A/S11.6.2024 11:22:17 CEST | Press release
Company Announcement No. 1115 On 24 April 2024, we initiated a share buyback programme, as described in Company Announcement No. 1104. According to the programme, the company will in the period from 24 April 2024 until 23 July 2024 purchase own shares up to a maximum value of DKK 1,000 million, and no more than 1,700,000 shares, corresponding to 0.79% of the share capital at commencement of the programme. The programme has been implemented in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (“MAR”) (save for the rules on share buyback programmes set out in MAR article 5) and the Commission Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour rules. Trading dayNumber of shares bought backAverage transaction priceAmount DKKAccumulated trading for days 1-25478,1001,023.01489,100,86026:3 June 20247,0001,050.597,354,13027:4 June 20245,0001,055.705,278,50028:6 June20243,0001,096.273,288,81029:7 June 20244,0001,106.174,424,68
Landsbankinn hf.: Offering of covered bonds11.6.2024 11:16:36 CEST | Press release
Landsbankinn will offer covered bonds for sale via auction held on Thursday 13 June at 15:00. An inflation-linked series, LBANK CBI 30, will be offered for sale. In connection with the auction, a covered bond exchange offering will take place, where holders of the inflation-linked series LBANK CBI 24 can sell the covered bonds in the series against covered bonds bought in the above-mentioned auction. The clean price of the bonds is predefined at 99,594. Expected settlement date is 20 June 2024. Covered bonds issued by Landsbankinn are rated A+ with stable outlook by S&P Global Ratings. Landsbankinn Capital Markets will manage the auction. For further information, please call +354 410 7330 or email verdbrefamidlun@landsbankinn.is.
Relay42 unlocks customer intelligence with a new insights and reporting module, powered by Amazon QuickSight11.6.2024 11:00:00 CEST | Press release
AMSTERDAM, June 11, 2024 (GLOBE NEWSWIRE) -- Relay42, a leading European Customer Data Platform (CDP), is leveraging Amazon QuickSight to power its new real-time customer intelligence, reporting, and dashboard module. Harnessing the breadth and quality of customer data, the new Insights module empowers marketing teams to dive deep into customer behaviors and gain invaluable insights into the performance of their marketing programs across all online, offline, paid, and owned marketing channels. Preview of the Relay42 Insights module, in pre-beta version Key capabilities of the Relay42 Insights module include: Deep insights into customer behaviors: With the Relay42 Insights module, marketers can ask unlimited questions about their data and gain a deeper understanding of how to serve their customers more effectively. Simplicity with AI-powered querying: Marketers can use artificial intelligence to query their data using natural language search, reducing the reliance on data scientists. Us
Metasphere Labs Announces X Spaces Event on the Topic of Green Bitcoin Mining and Sound Money for Sustainability11.6.2024 10:30:00 CEST | Press release
VANCOUVER, British Columbia, June 11, 2024 (GLOBE NEWSWIRE) -- Metasphere Labs Inc. (formerly Looking Glass Labs Ltd., "Metasphere Labs" or the "Company") (Cboe Canada: LABZ) (OTC: LABZF) (FRA: H1N) is thrilled to announce an engaging Twitter Spaces event on Green Bitcoin mining, energy markets, and sustainability on July 3, 2024 at 2 p.m. ET. Follow us on X at MetasphereLabs for updates and to join the event. What We'll Discuss Bitcoin Mining Basics: Understand the fundamentals of Bitcoin mining.Energy Market Dynamics: Explore how Bitcoin mining interacts with energy markets.Sustainable Innovations: Learn about our efforts to promote sustainability in Bitcoin mining.Sound Money: Discover how tamper-proof currency can enhance stability.Efficient Payment Rails: See how fast, neutral payment systems support humanitarian projects.Carbon Footprint: Compare Bitcoin's environmental impact with traditional banking. "We're excited to host this event and dive into the critical topics of Bitcoin