Hyperion Asset Management neutralises its net climate impact

From

Mark Arnold

Hyperion Asset Management (Hyperion) has today announced that it has neutralised its net climate impact by offsetting its historical emission since its inception in 1996.

The announcement is the latest step in the equity manager’s “carbon light” approach and commitment to cutting global emissions.

Commenting on the announcement, Hyperion’s Managing Director and Chief Investment Officer Mark Arnold said that reducing and neutralising carbon emissions was of paramount importance and that the asset manager had partnered with environmental consultancy South Pole to assist in this process.

“In our view, the single biggest structural headwind to the global economy and everyone’s general quality of life is the negative and worsening effects of climate change. Our portfolios are extremely carbon light, but we wanted to also ensure that Hyperion’s carbon footprint was being offset to minimize the negative net impact our business activities are making on the climate and the environment.”

“We believe that investors with direct and material exposures to fossil fuel-based energy businesses will underperform. This underperformance will occur because they will be disrupted by renewable energy generation and storage systems and electric vehicles. In the long-term these companies will be forced to internalise environmental costs relating to climate change that they have historically externalised.”

“Looking ahead, we expect economic growth to remain lower for longer and believe that the role of fossil-fuel based businesses will substantially diminish over the next decade. Long-term investors who fail to recognise the economic imperative to decarbonise their portfolios will do so to their own detriment,” he added.

Hyperion, which currently manages $8.6 billion across three strategies, engaged South Pole to assist in the planning and implementation of its carbon credit strategy which has seen it achieve South Pole’s ‘Climate Conscious’ label. The program with South Pole contributes to various initiatives both in Australia and abroad including EcoAustralia Biodiverse Tree Planting project, which aims to plant one million trees across Australia.

Jason Orthman, Hyperion’s Deputy Chief Investment Officer said: “Sustainability has been core to Hyperion’s investment philosophy and process since it was established. Our portfolios are made up of disruptive, high-quality, and innovative companies with sustainable competitive advantages. When you look at the amount of carbon which is produced by the companies we own, it is a small fraction of their relevant benchmarks.

“We believe that good investment returns are interlinked with sustainability and environmental outcomes and as cheaper renewable energy options continue to become commercially viable, carbon-intensive businesses will struggle to compete with those that are “carbon light” in the decade ahead.

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