What are the risks for Investors?
Air pollution and Climate Change are the leading environmental health risks. Their inherent health effects are a major cost for governments, which therefore need to regulate. This increases the regulatory risk for emitting facilities and investors. In addition, Millions of dollars in public health lawsuits are facing energy companies and insurers see public health litigation increase against energy, polluters and transport. As a consequence on financial markets, air pollution related public health and environmental risks have demonstrated a significant negative association with stock returns.
Additionally, in 2011, a thesis was put forward that suggested only a fraction of the fossil fuel reserves of publicly listed energy producers can be developed if dangerous levels of global warming is to be avoided. The implication of this thesis means a large proportion of fossil fuel reserves could be destined to become ‘unburnable carbon’ or stranded assets, and the share prices of fossil fuel producers may be overvalued. Although the concept of stranded assets in the resource and energy sector is not new, there is a range of perspectives on the investment risk associated with unburnable carbon. Investors and financial regulators are increasingly aware of climate-change risks and concerned emitting facilities will not be able to burn fossil fuel reserves since burning available fossil fuels would mean breaching the 2°C globally-agreed temperature goal.
More than ever, financial institutions are looking for long term, reliable equity investments and need to ensure listed companies do not face long term health and environmental liabilities. These risks also creates opportunities for more sustainable investments.
Reduce risks, anticipate regulations and increase returns
AURAIA has developped a novel Quantum AI Risk Prediction Platform using its high resolution Air Quality, Climate and Health risks forecasting as well as Artificial Intelligence for investors to:
- Accurately assess Air Quality, Climate, Health and Financial risks
- Predict upcoming regulations
- Enhance sustainable equity investing