The Local Authority Pension Fund Forum (LAPFF) and the Carbon Tracker Initiative (CTI) have launched a new report ‘Engaging for a Low Carbon Transition’ which sets out why a 2˚C business model can be less risky than a ‘business-as-usual’ model for oil and gas firms.

The study clarifies the effects on this business model on shareholder value and provides practical ‘hands on’ guidance on how to engage with businesses on low carbon transition. It also outlines the level at which investments are ‘two-degree’ compliant.

LAPFF has been increasingly concerned about the investment effects of carbon risk and has engaged with companies on disclosure and carbon management since 2001.

In the past few years, the forum has worked with a number of oil and gas companies and has maintained its emphasis on the two degree business model.

The LAPFF commissioned Carbon Tracker to provide further financial analysis and to establish a clear strategic direction.

While Introducing the report at the launch, LAPFF chairman Kieran Quinn said: “The big, and very positive picture that the report presents, is that a two degree business model is less risky than ‘business as usual’.

"In periods of low oil prices, less shareholder value is destroyed. And unless oil prices match or beat historic highs, the two degree model delivers superior value for shareholders.”

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