Carbon-bubble risk might strand Glencore-Xstrata “assets”, I warn in the FT.

My op-ed in the FT: “In the build-up to next month’s shareholder vote on the proposed £70bn merger of Xstrata and Glencore, investors have focused on executive compensation. As is so often the case, they are neglecting other systemic risks, in particular that of climate change. Yet a third of Xstrata’s revenues come from coal. Atmospheric research centres are telling governments that unless greenhouse gas emissions from coal, oil and gas burning are slashed, we are heading for a 6C rise in global temperatures that would be economically and environmentally catastrophic. As things stand, the markets assume governments will not act on these warnings in any meaningful way. But they might – especially if events such as this week’s devastating storm on the US northeast coast become more frequent. And if they don’t, others might act even without regulation.”

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