Investors warn moves to curb climate change will hit fuel demand

From the Financial Times (pay wall I believe):

Investors warn moves to curb climate change will hit fuel demand

October 24, 2013
By Ed Crooks
Investors managing assets worth about $3tn have written to the world’s largest oil, gas and coal companies, calling on them to prepare for a possible decline in demand for fossil fuels caused by policies to fight the threat of climate change.

The letters, signed by 72 investors including several US state pension systems and fund managers such as Scottish Widows and Aviva, warn the companies that they may be investing in production capacity that will never be used.

The correspondence reflects growing concern among many investors about the prospect that fossil fuel reserves will be “stranded assets”, which cannot be extracted and used without causing dangerous global warming. The letters were sent to 45 companies, including large oil and gas producers such as ExxonMobil, Royal Dutch Shell and BP, and mining groups including BHP Billiton, Rio Tinto and Peabody Energy.

They urge the companies to carry out a “risk assessment” of the consequences of a global move to cut greenhouse gas emissions by 80 per cent by 2050, a reduction that has been estimated as giving a reasonable chance of limiting the rise in global temperatures to an acceptable 2°C.

The investors asked the companies to carry out the risk assessment in time for their 2014 annual meetings, generally in the first half of
next year, and to publish details about their conclusions, subject to the constraints of commercial confidentiality. About 30 companies have now replied to the letter, Ceres said, some rejecting the idea outright, some saying they planned to comply…