Investors Warn Moves to Curb Climate Change Will Hit Fuel Demand

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Investors Warn Moves to Curb Climate Change Will Hit Fuel Demand
I this article, investors managing assets, which have been estimated to be worth $3tn, have written to the world's biggest oil, gas and coal companies, warning them of a possible decline in the demand for fossil fuels caused by various policies, which have been adopted to fight the threat of climate change. The letters have been signed by various US state pension systems, fund managers such as Aviva and Scottish Widows, and 72 investors. They warned the companies that they might be investing in production capacity, which might never be used. The letter has also warned that if demand for fossil fuel declines sharply, prices would slump, leading to losses.
The letters have been sent to 45 companies, including the large oil and gas producers such as Royal Dutch Shell, BP, and ExxonMobil, and mining groups such as Rio Tinto, Peabody Energy, and BHP Billiton. They urge the various companies to carry out a risk a...