May 19, 2014 - 9:00am
The Climate Institute and the Asset Owners Disclosure Project (AODP) are pleased to kick off today the Australia visit of Bob Litterman, former head of risk for Goldman Sachs, now head of a hedge fund and outspoken climate risk advisor.
“Bob Litterman has been very active in the North American pension industry, helping funds to manage climate risk and teaching them how to best consider it in the context of their investments. We are pleased to have partnered with the AODP to help Bob share his understanding of how to better manage climate risk,” said John Connor, CEO of The Climate Institute.
Litterman is co-designer of the Black-Litterman Quant model for portfolio allocation which is used extensively by the superannuation industry in North America. He was named GARP 2013 Risk Manager of the Year; and is also on the Board of the AODP, an organisation that started in Australia through The Climate Institute six years ago and is now global.
Regardless of where in its high or low the Australian political
rollercoaster around carbon is, the reality is that most businesses are
well aware that pricing carbon is coming. It is delusional to think
The AODP annually rates the world’s largest 1,000 asset owners, most of whom are superannuation and pension funds, on how they address the risks posts by climate change on their members’ savings. These asset owners’ investments – together valued at over US$70 trillion – holds more than half of the world’s stock market.
“Shifting just 5 per cent of that investment to clean energy and other low carbon investments could both minimise the physical risks posed by climate change and put the world on a path for a more prosperous and sustainable future,” said Connor.
Julian Poulter, head of the AODP and Business Director at The Climate Institute, added: “If you think that the looming repeal of the carbon laws means the end of carbon pricing and the end of uncertainty, think again. That is the message that Bob will deliver, with force and clarity.”
“Regardless of where in its high or low the Australian political rollercoaster around carbon is, the reality is that most businesses are well aware that pricing carbon is coming. It is delusional to think otherwise.”
“We think that Bob, with his invaluable insight from the housing bubble in the US, has some important messages around the management of climate risk. As the world’s developed nation most exposed to the impacts of climate change, Australia – its industry and everyday people – need to hear and heed this message.”
Poulter and Dr John Hewson, former head of the Liberal Party and Chairman of the AODP, are available for comment throughout the week.
The Climate Institute and AODP, with support from the Investor Group for Climate Change, are hosting a series of events with Litterman in Sydney and Melbourne this week. Spots for a lunch in Sydney on Thursday 22 May are still available and can be booked by clicking here. For more information
Kristina Stefanova | Communications Director, The Climate Institute | 02 8239 6299