Environmental risks in the power, food and beverage, and real estate sectors can pose new challenges for investors.What are companies and investors doing about the environmental challenges that will affect their bottom lines? At WRI, we help the financial sector understand environmental risk, be it from climate change, water scarcity, or energy insecurity. We also help companies build resilience in their supply chains and help investors pick the forward-thinking companies that will be good environmental bets in the future.To that end, the World Resources Institute and HSBC’s Climate Change Centre of Excellence have released new research analyzing the environmental risks facing the food & beverage, power and building sectors in India, Indonesia, Thailand, Malaysia, Vietnam and the Philippines.The reports show that climate change, energy insecurity and water scarcity are strategic risks for investors in the region, and those companies that manage these risks stand to differentiate themselves from their peers in the future.Water shortages put the Asian power sector at risk:In India, for example, 74 GW – over half of existing and planned capacity for major power companies – is located in areas considered to be water scarce or water stressed.Also in India, 79% of new power capacity will be built in areas that are already water scare or stressed.Water shortages can cause costly delays and decreases in power production, lowering the rate of return on investment.Asian food and beverage sector is vulnerable to climate and water risks:The industry’s dependence on agriculture, aquaculture and water resources for business operations makes it particularly susceptible in a region where climate change is projected to severely intensify water scarcity problems.Edible oils, starches, and sugar sub-sectors will be most vulnerable to increasing agricultural prices, while aquaculture, poultry, and dairy will be vulnerable to disease and contamination.As part of the study, HSBC’s analysis on an Indian sugar company shows that a sugarcane price increase of 1 percent can lead to a decline in profit of up to 10 percent.The commercial real estate sector in South Asia benefits from going green:As electricity and water prices are expected to increase, “green” building retrofits or new construction can protect the Asian real estate sector from increasing environmental risks emerging in the region.Most of the energy used by commercial buildings in the region goes toward air conditioning and lighting. In India, for example, lighting accounts for 60 percent of the energy used in commercial buildings while 32 percent goes toward air conditioning.According to a case study, a typical commercial building (300,000 square feet) in Mumbai, a 1 percent increase in electricity costs could increase annual operating costs by approximately Rs 2.8 million, or around USD 60,000.About the Reports: Weeding Risk: Financial Impacts of Climate Change and Water Scarcity on Asia’s Food and Beverage Sector is the first report in the three-part series. It looks at seven food and beverage sub-sectors in the region. Findings suggest that the edible oils, starches, and sugar sub-sectors will be the most vulnerable to increasing environmental trends, such as climate change and water scarcity, in the region. Over Heating: Financial Risks from Water Constraints on Power Generation, analyzes water-related risks facing thermal and hydroelectric power plants in India, Malaysia, the Philippines, Thailand and Vietnam. The analysis found that water shortages pose the highest risk for power generation companies in India compared to the other countries. Surveying Risk, Building Opportunity: Financial Impacts of Energy Insecurity, Water Scarcity, and Climate Change on Asia’s Commercial Real Estate Sector, assesses the commercial building sector in the region and the financial impacts it could face from energy insecurity, water scarcity and climate change. The report finds that green building investments can alleviate these risks and achieve a positive return for buildings owners in a few years.
Transfers ‘Salah owes Liverpool more than they owe him’ – Ince doubts Real Madrid move Chris Burton Last updated 1 year ago 05:13 5/26/18 FacebookTwitterRedditcopy Comments(0) Laurence Griffiths Transfers Real Madrid Real Madrid v Liverpool Liverpool UEFA Champions League Mohamed Salah African All Stars The Egyptian forward continues to be linked with a switch to Santiago Bernabeu, but a former Reds star is expecting him to remain at Anfield Mohamed Salah “owes Liverpool as much, if not more, than they owe him”, Paul Ince has claimed amid ongoing talk of a possible move to Real Madrid for the 44-goal Egyptian forward.A remarkable debut campaign at Anfield has seen the 25-year-old billed as one of the finest talents on the planet.It is being suggested that the Ballon d’Or could soon be added to an enviable collection of honours which already includes the Premier League Golden Boot , the PFA Player of the Year award and FWA Football of the Year prize. Article continues below Editors’ Picks Goalkeeper crisis! Walker to the rescue but City sweating on Ederson injury ahead of Liverpool clash Out of his depth! Emery on borrowed time after another abysmal Arsenal display Diving, tactical fouls & the emerging war of words between Guardiola & Klopp Sorry, Cristiano! Pjanic is Juventus’ most important player right now Those in Madrid would welcome the opportunity to buy into that ability, once they have faced Liverpool in the Champions League final, but Ince doubts that a deal will be done for a player who has spent just one season on Merseyside.Jurgen Klopp invested £36.9 million ($49m) in Salah last summer and has helped to carry an in-demand talent to the level he currently graces, with Ince telling Paddy Power : “I know fans will be worried about losing Salah. But I believe Anfield was the place where he reinvented himself this season, and Salah owes Liverpool as much, if not more, then they owe him.“He should challenge himself to bag another 30 or 40 goals next season, before considering moving on to somewhere else.“Those clubs will still be there.”Salah has offered no indication that he will be looking to move on, with it having been a boyhood dream of his to represent Liverpool .Klopp has also been quick to play down the exit talk , with the German understandably reluctant to consider parting with another prized asset one window on from the sale of Philippe Coutinho to Barcelona.For now, all of those at Anfield are looking for Salah to produce one more inspirational performance and help the club to European glory in Kiev.