FORMER US vice-president Al Gore, above,has warned investors to end the "routine" practice of ignoring sustainability factors when picking stocks. The politician-turnedenvironmentalist said the practice of investing in companies that were blind to their own environmental consequences equated to short-termism. Speaking at a pensions conference in Edinburgh, Mr Gore said scheme trustees had an obligation to look beyond the quarterly company reports and take notice of afirm's carbon footprint. He said: "Sustainable investing has ahand-in-glove link with long-term investing." Mr Gore added that a characteristic of the new world environment was an obligation for investors to look much more carefully at the impact of companies on the climate crisis. By not taking into consideration the effect that some companies have on the environment, investors risked focusing on short-term results, delegates were told. Sooner or later,a firm's carbon emissions will have to become part of the analysis people make when making investment choices. Not only was it important as part of the battle against global warming, but abuild-up of environmental damage will impact on firm's performance and profits in the future, Mr Gore added. He said: "There are lots of businesses whose business plans are blind to the carbon consequences of what they are doing." But investors are neglecting to analyse in enough detail what is not included on company reports -the impact of the company on the air and water,the former Presidential candidate said. Mr Gore was speaking at the event not only in his capacity as an environmental campaigner,but also as chairman of sustainable investing firm Generation Investment Management. He said sustainability and growing longevity were two of the most important issues facing pension fund trustees. He said: "Your treatment of this challenge is important not only for matching assets to long-term liabilities, not only for getting better returns, but also for serving a larger purpose -the broader acceptance of principles that will be much more in people's interest." Institutional investors also have arole to play in incentivising firms to focus on their environmental impact, Mr Gore told delegates. In aquestion and answer session after his keynote speech, Mr Gore called for tougher environmental targets than those outlined in the Kyoto Protocol. | 
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