• Gustavo Bernal Torres

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

0 comments

Recent Posts

See All

Maladaptation happens when you try to solve one problem and wind up creating another. "We're finding that there are many cases in which adaptation projects don't work," said Clark University professor

Canada publishes Green Bond Framework in advance of inaugural issuance. The transition to a net-zero emissions economy will require substantial public and private sector investment and expertise; to t