This is a new one, or at least taking the whining about certain investments and turning the amp up to about an 8
How to invest without committing ‘climate crime’
Companies unprepared for a low-carbon society are taking unacceptable risks, Paul Brownsey​ of Pathfinder Asset Management tells ROB STOCK.
Q. Pathfinder’s CareSaver is the only KiwiSaver scheme to measure its funds’ carbon footprints. Really? In this day and age?
A. Unless we have missed the news, we are the only KiwiSaver to report the carbon footprint of their KiwiSaver, and measure how the companies we invest in will adapt to a low-carbon economy. This is a critical piece of risk management that is dangerous to ignore.
If an investment manager is investing without thinking about how companies heavily reliant on fossil fuels will survive and thrive in the low-carbon world we are clearly heading toward, then they are being reckless with your money.
Obviously, lots of whining about investing in fossil fuels companies. But
Is it hypocritical to drive a car, and still invest in a fossil-fuel free KiwiSaver fund?
I think it is important to be realistic. We still live in a society that is stuck in a dependency on fossil fuels. For instance, due to poor planning at local and national government level, many people just don’t have reasonable access to public transport.
People shouldn’t beat themselves up because they can’t make big changes. Just make the changes you can. Be conscious when you spend or invest money. Businesses and governments will respond to economic pressure.
Yet, they still want to force Other People to give up their fossil fueled lifestyles.
Meanwhile
Coronavirus Is a Stress Test for Future Climate Shocks
Risk modelers are looking at the global response to Covid-19 as a test case for how climate shocks could roil markets and push governments to respond to existential threats.
The 2° Investing Initiative, a European think tank that works with large financial firms and regulators to plan for climate risks, tried its hand at mapping out Coronavirus scenarios this week. “There are some similarities to climate risk in terms of the speed and scale with which the crisis is materializing and because this is also an exogenous risk that’s not part of the normal business cycle,†said Jakob Thomä, a managing director in Berlin.
The virus is a completely different economic scenario, however: while long-term climate risks are felt by an entire region in terms of unemployment and economic activity, Covid-19 has a bigger impact on older age groups. Swift national shutdowns and the expectation that the virus has an end date will also have a dissimilar impact on the economy. But the current crisis highlights something risk modelers do want to spend more time on: the social consequences of climate change.
Blah Blah Blah.
Read: You Too Can Invest Without Committing A “Climate Crime” Or Something »