Elion House at The World Federation of Scientists, Erice, Italy

Elion House, Tatsuo Masuda, presents on the economic and financial impact of COVID- 19. He is a Panel Member, World Federation of Scientists and Strategic Committee Member, Elion House.

A sustainable investment in environmental technologies for a green and resilient recovery. There are clear connections between COVID-19 and the climate crisis. Climate change increases the likelihood of COVID-type pandemics – through changes in the habitats of disease vectors, for example, increased inter-species contact resulting from deforestation.

The World Bank estimates that 40-60 million people will be driven into extreme poverty in 2020. Similarly, climate change will generate events that escalate and proliferate, from multiple breadbasket failures to climate-induced conflicts and refugee crises. COVID-19 is in many ways unprecedented, but climate change threatens to produce shocks of greater magnitude that play out over longer timeframes IPCC special report, Global Warming of 1.5°C, 2018

Elion House at RiskMinds 2019 – Climate Risks Impact on Investment Portfolios

Image result for riskminds logo

RiskMinds 2019 – World’s leading risk management event. Manage emerging risks. Embrace technology. Challenge culture. (Learn more)

Elion House CTO/CIO, Benjamin Khoo, made a keynote speech on the impact of climate-related risks and intensifying regulations on global investment portfolios.

The 3 day conference in Hong Kong was attended by global banks, investors, corporates and regulators. Climate change was voted by attendees as one of the top 3 major risks facing organisations alongside cyber attacks and geo-politics.

Elion House Moderates at RiskMinds 2018

CTO/ CIO, Benjamin Khoo, moderates a panel of institutional investors including Swiss Re, Peak Re, and IFC’s Asia Chief Investment Officer who estimates clean energy to be a $20 trillion opportunity.

The panel highlighted a global trend by institutional investors who control around $90 trillion to decarbonise their portfolios away from fossil fuel investments into sustainable investments that meet environmental, social, governance (EST) criteria.

The panel also noted the impact on static portfolio management by disruptive technologies and a need to rethink concepts of finance and business in order to keep up with the pace of technological progress. Many institutional investors and corporations around the world have set up flexible venture capital funds focused on investing in new technologies. Benjamin spoke on how to structure low-risk ESG-compliant cleantech infrastructure assets enabled by emerging clean energy technologies (baseload vs. intermittent power). (Learn more)

RiskMinds is a leading international risk management event produced by Informa.

Elion House at Insurance Forum 2017 (Invesco & AsianInvestor) – Investing by ESG Principles

Panel Discussion “Does Responsible Investing Matter?”, during the Insurance Forum 2017 on 01 June 2017, at the Four Seasons Hotel, Hong Kong, China.

Elion House:

CTI/CIO, Benjamin Khoo, speaks alongside Invesco and BSR at the AsianInvestor Insurance Forum 2017 sponsored by Invesco at the Four Seasons in Hong Kong.

“Over the last 25 years bridging cleantech development and financial engineering, I have noticed a convergence of science and of human consciousness. As new technologies continue to disrupt the world, it is time to rethink concepts of technology, business, and finance, using them as tools to tackle the most pressing problems facing the world. Cleantech infrastructure enabled by new clean energy technologies is a new asset class that is ESG-compliant and can provide investors with low-risk and superior returns over the long-term”.

 Invesco & AsianInvestor:

“Investing according to ESG principles involves the consideration of environmental, social and governance
issues when selecting companies and countries in which to invest.”

“In the past, ESG issues typically resulted in the exclusion
of certain industrial sectors (in armaments, tobacco and
alcohol companies, for example) or certain countries from
investment portfolios. While such ‘exclusion’ techniques are
still widely used, the incorporation of ESG considerations in
investment decisions is now done in a variety of ways.”

“One indicator of the increasing awareness of ESG issues
is the growing number of institutional investors that are
signatories to the United Nations–supported Principles for
Responsible Investment (UN PRI). Invesco became a UN
PRI signatory in 2013. According to PRI, the assets under
management of its signatories have grown from less than
US$7 trillion at PRI’s launch in 2006 to US$62 trillion as of April
2016 (Figure 2), more than three quarters of the global asset
management industry’s assets.”

“As signatories, institutional investors have a duty to act in
the best long-term interests of their beneficiaries. In that
fiduciary role, signatories believe that ESG issues can affect
the performance of investment portfolios and recognise
that applying six key ESG principles may better align
investors with broader objectives of society. The six key
principles are:

• to incorporate ESG issues into investment analysis and
decision-making;
• to be active owners and incorporate ESG issues into
ownership policies and practices;
• to seek appropriate disclosure of ESG issues;
• to promote acceptance and implementation of the
principles in the industry;
• to work together to enhance effectiveness in
implementing the principles and
• to report on activities and progress towards implementing
the principles.”

AsianInvestor Invesco HK FULL -1June2017

Elion House at Annual Borrowers & Investors Forum (AsianInvestor), May 2017

CIO, Benjamin Khoo, was invited back to speak on the infrastructure panel in Singapore on how cleantech infrastructure funds are becoming a significant asset class for institutional investors driven by record negative interest rates, the Paris Agreement, and a growing demand for new assets with a low correlation to other assets and the economy.

With the Paris Agreement now in force, he talked about portfolio de-carbonisation and a superior yield offering in cleantech infrastructure with sustainable low-risk cash flows, and how to protect your investment portfolio over the long run via strategic allocations towards ESG-compliant infrastructure or real economy assets.

Norway’s $863 billion wealth fund bans 52 coal-linked firms

By Stine Jacobsen
OSLO (Reuters) – Norway’s $863 billion (£610.3 billion) sovereign wealth fund, the world’s biggest, said on Thursday it had sold shares in 52 coal-dependent companies from its portfolio as part of a policy to fight climate change.
A Reuters calculation showed the stakes sold were worth at least $1 billion at the end of 2014, before the fund started big divestments from coal. The biggest holdings included a $188 million stake in CLP Holdings <0002.HK>.
Norway’s parliament agreed last year to make the fund, built on revenues from the country’s vast offshore industry, sell out of companies that derive more than 30 percent of their turnover or activity from coal.
The fund listed U.S. firms American Electric Power Co Inc <AEP.N>, AES Corp <AES.N> and Allete Inc <ALE.N> among the firms, along with China Coal Energy Co Ltd <601898.SS> and Coal India <COAL.NS>, the world’s biggest coal miner by output.
Global coal producer Peabody Energy Corp <BTU.N>, which filed for bankruptcy on Wednesday, was also on the list. The fund expects to exclude more firms from its investment universe amid the new rule.
“The intention is to assess the remainder of relevant companies in the portfolio by the end of 2016,” the fund said in a statement.
Norges Bank Investment Management said it had given the companies an opportunity to give views before they were excluded. The fund sent letters to the companies, but only five responded, it said in a statement.
The fund declined to give an overall value of its divestments so far.
The Norwegian finance ministry previously said the curtailment of investments in coal-dependent businesses could lead the fund to sell shares in about 120 companies worth some 55 billion Norwegian crowns (£4.7 billion)..
Martin Norman, climate and energy adviser at environmental group Greenpeace, welcomed the sales which he said were probably the biggest single divestment from coal ever.
“They are setting a new standard when it comes to transparency,” he said. Greenpeace studies have indicated that the fund should sell shares totalling about 80 billion crowns to follow parliament’s instructions to limit exposure to coal.
He said Greenpeace wanted the fund to diversify even further from fossil fuels and that it was wrong to focus only on the climate risks of coal while promoting oil and gas.
The fund has a range of ethics criteria for excluding firms from its portfolio, including severe environmental damage, nuclear weapons making, tobacco production and certain labour conditions.
(Reporting by Terje Solsvik, Stine Jacobsen and Alister Doyle; Editing by Mark Heinrich)
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Copyright 2016 Reuters.