Climate Change Risk and Shareholder Value
15
HOI PING VENTURES EXTRA-FINANCIAL ANALYSIS Climate Change Risks TBLI Bangkok - May 2007
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Alexandra Tracy, Hoi Ping Ventures - China
Transcript of Climate Change Risk and Shareholder Value
HOI PING VENTURES
EXTRA-FINANCIAL ANALYSISClimate Change Risks
TBLI Bangkok - May 2007
2HOI PING VENTURES
Importance of “extra-financial” analysis – climate change risks
An example:Pearl River Delta, China
EXTRA-FINANCIAL ANALYSIS
HOI PING VENTURES
Climate change mitigation target
HOI PING VENTURES
Technology and Innovation
Local, national and international policy measures
Market MechanismsTax & Emissions
Trading
Energy Efficiency Adaptation
Global & Regional Regimes
HOI PING VENTURES
“Climate change is not by any means just an issue about the environment.
It is a business issue.”
Rt Hon. Margaret Beckett MP
6HOI PING VENTURES
•Regulatory risk
•Litigation risk
•Competitiveness risk
•Reputational risk
•Physical risk
Potential Threats to Shareholder Value
HOI PING VENTURES
An example:Pearl River Delta, China
HOI PING VENTURES
Rapid industrial development
1979 2004
HOI PING VENTURES
Sophisticated infrastructure
HOI PING VENTURES
HOI PING VENTURES
HOI PING VENTURES
13HOI PING VENTURES
•Facility operation disrupted
•Power supply interrupted
•Delivery of components halted
•Export of finished goods delayed
Disruption is Bad for Business
14HOI PING VENTURES
•Lower revenues
•Higher operating costs
•Higher taxation
•Decreased FDI
•Negative for shareholder value
Potential impacts on business
HOI PING VENTURES
Alexandra Tracy(852) 2203 4614
http://www.civic-exchange.org/publications/2006/cc.pdf
