How climate change has changed how US investors assess risk
It's no longer just what you invest in, that counts, but where your operations are located and, thus, your risk to climate change-related damage
New York — With an above-average percentage of its power generated from renewable sources and one of the largest battery storage operations in the US, utility Sempra Energy seemed to check all the boxes for portfolio manager Todd Ahlsten, who manages more than $18bn for Parnassus Investments based on each company’s environmental, social and governance (ESG) attributes.
But he sold his shares in the San Diego-based company earlier this year because of his conviction that its location in California will put it in the cross-hairs of increasingly severe weather patterns, no matter how environmentally responsible it may be...
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