Climate Change Risk Mitigation Solutions
Climate Change is Wreaking Havoc on Shareholder Value
There has been a sea change in consumer and investor attitudes towards the risk of Climate Change, in particular those companies with the double threat of deforestation and emissions liabilities.
We have Solutions
EnVision Corp., in partnership with InfiniteEARTH, has developed a tool that allows companies and asset managers to mitigate their environmental impacts and hedge their exposure to the Climate Change Risk of high carbon stocks. The InfiniteRETURNS Climate Credit Default Swap is designed to provide portfolio insurance as a hedge to climate change risk including the risk of stranded assets and multiples compression, resulting from future climate regulations. This unique climate change risk hedge allows asset managers to maintain exposure to high performance sectors while meeting green mandates and risk management targets.
Pioneering the world’s most undervalued Asset Class
The market’s most Undervalued Asset Class: The Environment
These externalities have created the world’s most grossly undervalued asset class, leading to an environmental crisis, which in turn presents a the single greatest economic opportunity of our time. Investment in Environmental Services and Natural Capital today presents extraordinary growth potential.
To correct these environmental imbalances, we must first understand that they are symptomatic, not causal. At their root is an outdated economic model that has led to the mispricing and consequently the misuse of our valuable environmental resources. The solution, therefore, demands a shift in our current economic paradigm away from a purely extractive economy to a productive landscape where environmental replacements costs are embedded in the price of the products we consume and in very DNA of the companies we patronize and invest in.
“The services of ecological systems and the natural capital stocks that produce them are critical to the functioning of the Earth’s life-support system. They contribute to human welfare, both directly and indirectly, and therefore represent part of the total economic value of the planet. We have estimated the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations.
For the entire biosphere, the value (most of which is outside the market) is estimated to be an average of US$33 trillion per year (nearly double the total Global GNP).
Because of the nature of the uncertainties, this must be considered a minimum estimate.”
The value of the world’s ecosystem services and natural capital – Costanza, dÁrge, de Groot, Farber, Grasso, Hannon, Limburg, Naeem, O’Neill, Parulo, Raskin, Sutton, van den Belt
Turn your Stranded Assets into a Triple Bottom Line Asset with Best in Class Forest Conservation & Renewable Energy Projects
The InfniteRETURNS CCDS isn’t just about asset risk mitigation. It’s a revolutionary tool that provides a mechanism for embedding environmental replacement costs into the very DNA of a company and it’s products.
The InfniteRETURNSTM Climate Credit Default Swap is designed to provide portfolio insurance as a hedge to climate change risk including the risk of stranded assets and multiples compression, resulting from future climate regulations. This unique climate change risk hedge allows asset managers to maintain exposure to high performance sectors while meeting green mandates and risk management targets.
|5 & 10 Year Climate Change Hedge|
|$100 million||Min. Notional Portfolio Value|
|$10,000||Calculated in increments of $10,000|
|Issue Premium||2 Basis Points per Term Year|
|Annual Issue Premiums||$20,000|
|Total Issue Premiums||$100,000||$200,000|
|Trigger Event||>30% ^ between S&P 500 / i4C-500 Index|
|Settlement||Physical (carbon credits)|
|Underwriter / Issuer||InfiniteEARTH Limited & Envision Corp.|
S&P 500 Companies that are leaders in climate change management have this in common…
CDP S&P 500 Climate Change Report 2014
The common misconception is that taking action on climate change exacts a cost to profitability. Our data shows the opposite. The number one question US investors ask CDP about climate change data—‘is there is evidence of a link to financial performance?’ —the answer is a resounding yes”