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Article

13 Oct 2016

Author:
Madeleine Cuff, BusinessGreen

Commentary: Policymakers can play a major role in transition to low-carbon auto market

"How investors can help car companies tackle climate risk roadblocks", 11 October 2016

Car companies must prepare for a low-emission world by reshaping their business models…investors claim. Activist investors have put oil giants such as Exxon Mobil, BP and Shell in the spotlight…demanding to know how their current business models will be compatible with the vision of a low-emission world…[W]hile a number of auto firms are publicly engaging on how to support the transition to a low-carbon economy, a group of major institutional investors is worried that the sector is not doing nearly enough...The Institutional Investors Group on Climate Change…aims to address some of the climate risks the industry faces today with the launch of a guide to help concerned auto investors…Policy makers will play a major role in guiding the pace and direction of the green auto market, with politicians critical to determining the success of the hydrogen and electric vehicle markets…[T]he IIGCC also stresses the importance of...ensuring the highest standards of corporate disclosure are applied…