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  • Writer's pictureGustavo Bernal Torres
    • Mar 10, 2022
    • 1 min read

Short-Selling Does Not Count As A Carbon Offset

Hedge funds need to assess the real impact of climate change on portfolios.

  • The argument that has been made is that investors should be able to net out their “long” holdings in higher carbon-emitting companies with short positions in such businesses to reduce the estimate of the overall carbon footprint of their portfolios.

  • While there is some merit to this view, it risks conflating two very different approaches to assessing climate change within investment portfolios: known in jargon as “financial materiality” and “double materiality”.


Source: https://www.ft.com/content/65ec280b-e9b0-40f3-9e6f-b0b65827aab6

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