LGIM: Accelerated energy transition offers ‘trillion-dollar opportunity set’


first_imgLGIM had long believed this to be the case but was “really pleased to have some real hard concrete evidence to support that assertion”, added Stansbury. LGIM analysis shows direction of travel is towards electrificationThe analysis showed that energy efficiency was “probably the most important technology” for investors to back, he said.“Excitingly, we have found so many bottom-up energy efficiency gains that, in our modelling, as the world becomes richer and flies more and uses more steel and drives further, the amount of energy consumed per person remains broadly flat,” said Stansbury.Policy mattered, but in some areas “just changes the timing”, he said. “With some things, like electric vehicles, technological change means they’re coming anyway.” In LGIM’s modelling of a pathway to a world where warming is well within 2°C above pre-industrial levels – the target set out in the 2015 Paris climate accord – the transition would bring profound geopolitical changes.“This modelling presents a compelling case for long-term investors to act to prepare their portfolios today”Sonja Laud, deputy CIO, LGIMThe asset manager said initial conclusions from its research intimated that the transition would bring “substantial and previously underestimated benefits” to many emerging market countries that currently depended on imported energy and were vulnerable to energy price shocks.Policy action urgently neededLGIM said global co-ordinated policy action was “imperative” to incentivise the rapid changes needed to keep global warming to below 2°C.Its research had concluded that, without such policy intervention, the world was on course for warming of up to 4°C above pre-industrial levels. Analysis from other organisations points to a similar outcome.Sonja Laud, deputy CIO at LGIM, said: “This modelling presents an even clearer economic rationale for co-ordinated policy action and presents a compelling case for long-term investors to act to prepare their portfolios today.”In an opinion piece in the Financial Times today, Anton Eser, LGIM’s chief investment officer, and Stansbury claimed some investors were sticking their heads in the sand.“We worry that some players may be hiding behind the dual nature of the energy challenge as an excuse to continue allocating capital in exactly the same way they always have,” they said. “In our view, investors must treat decarbonisation as the primary challenge, while recognising we must not imperil the need to meet the world’s growing demand for energy.” Investors have more to gain than lose from investing for a world that has kept a lid on global warming, according to analysis by the UK’s largest asset manager.According to a model developed by Legal & General Investment Management (LGIM), rapid decarbonisation of the energy system could be achieved at moderate cost and would create “trillions of dollars” of investment opportunities.Presenting LGIM’s analysis to journalists yesterday, Nick Stansbury, head of commodity research at the £1trn (€1.2trn) asset manager, said that “as a firm we think the risks are skewed asymmetrically towards investors preparing today in advance of policy action”.“In many areas we can identify that you don’t lose out by doing so if policy action doesn’t come,” he said.last_img read more

LA Clippers try to embrace challenging trip to China


first_img Newsroom GuidelinesNews TipsContact UsReport an Error PLAYA VISTA — Doc Rivers was joking. Kind of.Holding court with reporters Tuesday, he learned few of them would be accompanying the Clippers to China to cover the team’s two exhibition games Saturday and Wednesday against Charlotte.No budget for it, he was told.“Damn, I wish our budget wouldn’t let coaches go,” he said. “Being in another country is even more so.”By this time, Rivers was trying to put on a brave front.With a heavy itinerary every day they don’t play, including functions Chris Paul and Blake Griffin will partake in with Hornets owner Michael Jordan, this is a grueling eight days during a time when the Clippers, like everyone else, are trying to get ready for the regular season.And for the Clippers, their opener Oct. 28 in Sacramento is less than three weeks away.“I’ll tell you this,” Paul said, “we’ve got an itinerary and they’re not going to care if you’re sleepy, not sleepy or nothing. When it’s time to be somewhere, they’re going to tell you to be there.”Griffin hesitated and smiled when asked if making such a trip at this time bothers him.“I mean, there’s pros and cons,” he said. “That much time spent together, could be good for your team. But then you’re also missing out on hours and days and structured practices. But at the same time, fly over there, you’ve gotta practice, you’ve gotta lock in.“If you can go through all that with all those distractions, sometimes you can come out on the positive side. But we’re the ones who have to make that happen.”Like Griffin, Paul has been to China multiple times. Paul helped Team USA win the gold medal there in the 2008 Beijing Games. He’s looking forward to the locals.“The fans in China are amazing,” Paul said. “The amount of support that they show us year in and year out, it’s always a good time to go over there.”Rivers echoed that sentiment.“Yeah, I’ve been over there,” he said. “The fan reaction will be amazing. Yao Ming will be walking around with us a couple of nights. So that’ll be huge — literally. They’re great fans and that’s the one good thing. The arenas are so loud, so that’ll be a lot of fun.”Yet, he admits he’s concerned about the effects of the trip.“Yeah, but we’re not going to use it as a crutch,” Rivers said. “Like, we’re going to China and when we come back, we’re back. We have to get ready.”Somewhere along the line, Paul would love to get some work done. “Obviously, we know it’s a business trip,” he said. “You know, we’re going over there to learn more about our team and hopefully come back with a bigger purpose.”One the Clippers hope will lead to what Rivers’ Celtics earned when they went to Rome.“Going to the Vatican, going to the Colosseum, I mean, it was like warrior stuff,” Rivers said. “It was like, you couldn’t have scripted a more perfect place for a team that had championship aspirations to go to.”center_img The Clippers, who left Wednesday morning, will have flights of roughly 15 hours each way. That’s not to mention several more for the 890-mile trip from Shenzhen to Shanghai, where the games will be played.The Clippers and Hornets were picked by the NBA for this ambassador-like trip as part of the NBA’s Global Games China 2015.“No, I’d never go,” Rivers said, when asked if he’d take the team there at this time if he didn’t have to.Again, Rivers tried to laugh it off. He recalled the year he took his Boston Celtics to Rome for 2007-08 training camp. That team won the NBA title.“Honestly, I loved when we went to Rome that one year,” Rivers said. “I thought, with that team, like this would be the team to go somewhere because we’re so new. Being on the road kind of makes you hang out and get together, do things.last_img read more