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Investors should get climate report cards

AAP logoAAP 14/12/2016

Investors looking to put their money into companies that take climate change seriously should consider one of Australia's 25 fossil fuel businesses, a new analysis suggests.

Environmental campaign group Market Forces judged the companies against three Oxford University principles for investing in fossil fuels.

* Does the company accept the science of climate change;

* does it have a strategy to limit emissions;

* does it have clear milestones to judge its performance.

AGL Energy was the only of the 25 to positively address all three areas, Market Forces said in a report released Thursday.

While the finding is not a vindication of AGL's business, it does suggest investors are justified in sticking with it.

"Investors should continue to push AGL to reduce its emissions as quickly as possible, particularly given its position as Australia's largest corporate emitter of greenhouse gases," Market Forces said.

Mining companies BHP Billiton, Rio Tinto and South32 partially addressed the three principles, and to varying degrees.

Market Forces analyst Daniel Gocher said climate change was a material risk for all 25 companies but only six acknowledged this and 10 failed to acknowledge the science of climate change at all.

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