Sparkco2etcsec Discussion Threads

[florenceorbis] 25/4/2019 21:39

Apr 25, 2019, 04:32pm
The Extinction Rebellion: How Sustainable Finance Can Help Save The Planet
Lawrence Wintermeyer
Lawrence Wintermeyer
Contributor
Fintech
I cover fintech, digital, and investment.

An Extinction Rebellion climate change protester (AP Photo/Matt Dunham)

An Extinction Rebellion climate change protester (AP Photo/Matt Dunham) ASSOCIATED PRESS

Parts of London were brought to a standstill by the Extinction Rebellion last week. The protesters seek to bring to the public’s attention the ticking time bomb that the human race faces by not addressing climate change seriously or quickly enough.

The Extinction Rebellion is more an orderly assembly of rational modest citizens, many of whom have never protested before, than anarchists such as anti-capitalist / global protestors.

A seventy-year-old women who was arrested and wished not to be named said, “I have been a nurse and a childminder most of my life. The world we are leaving for the children and grandchildren is going to be horrendous and we let it happen. It happened on our watch. So we have to stand up and fight or lie down and fight.”

The movement’s message is frank and direct: governments, business leaders and citizens are too complacent in addressing the “existential” risks humanity is facing and must take urgent action before it is too late.

Grete Thunberg, the young Swedish environmental activist drove home this “burning platform” as a guest of the UK parliament, “when your house is on fire and you want to keep your house from burning to the ground, then that does require some level of panic."

2018 was the fourth warmest year since records have begun. Regardless of where you stand on the science of global warming the data trend is not good. We dump 10 gigatons of carbon into our atmosphere and up to 12 million tonnes of plastic into our oceans every year. Most sensible people will agree dumping toxic pollutants in our environment is not good for the planet or humanity and must be cut.
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So what can we the people do about this beyond peaceful protest and using the democratic tools (if we have them) at our disposal?

If you are fortunate enough to have a pension or investments, consider directing these funds to Sustainable Finance – money talks.

Sustainable Finance is a term “industry̶1; has appeared to settle on covering a host of different investments that have an environmental and/or social impact: ESG (Environmental, Social and Governance) focused, UN SDG (United Nations Sustainable Development Goals), impact investing, ethical investing, faith-based investing, to name a few of the big ones.

“We have to stop framing climate change as a future problem. The evidence of climate change is all around us and we can no longer ignore the risk,” says Jeff Gitterman, the co-founder of New York based Gitterman Wealth Management and a seasoned ESG investor who advises on more than $1 Billion of sustainable investments.

“Climate change risks are no longer up for debate they are happening all around us. The canary in the coal mine is the reinsurers, they are dealing with weather-related claims at an unprecedented rate and don’t see a clear path to addressing these risks.”

Holly Ruxin is the founder of Montcalm Capital, a West Coast firm creating investments to support companies delivering positive changes to society. She sees a great shift in the investment arena and says, “The stats are showing a tenfold increase in investment assets being deployed in the areas around climate change. There is great momentum towards investing in solutions to real problems we are facing in the world and we have a responsibility to continue to drive that momentum forward both as financial service providers and as investors.”

What most sustainable investments have in common is that they are seeking to invest in companies that will deliver a compelling investment return over the long-term, whilst doing social and/or environmental good. Essential to this are measures around good governance, which is central to achieving successful outcomes, and evidence suggests good governance may be one of the best and most appropriate ways to achieve long term sustainable investment returns.

Stuart Hutton of Simply Ethical in the U.K. has been an advisor in the Sustainable Finance space for years and recognizes the need for greater interaction with Financial Institutions to meet the urgent needs of the future.

“It is recognizing that the overall approach needs to be top-down as well as bottom up,” says Hutton.

“Policy and regulation will always have a part to play in steering us towards achieving the SDGs by 2030, but it is equally important that evolving products meet the needs of investors desires to see us achieve environmental and social impact, and investors are looking for those products right now.”

There is more than $40 Trillion in pension assets in the OECD area. The main aim of a pension is to provide for us in the future when we are more vulnerable. It is long term investing at its best and no other product out there presently could be merited as needing more attention.

Many societies are trying to better manage “old age” and there is now a prevalence of longer living thanks to medical proficiency, varied diets and often a better work-life balance. As pensions look at our long term future what more justification is there for you to make well-informed decisions by thinking about the environment we live in, the social impact of decisions and how businesses operate and conduct themselves in striving for profit.

Millennials and Generation Y (collectively the “Under 40’s”), and women of all ages are beginning to flex their investment muscle. At conferences over the last year, I have seen more research presented that the Under 40s and women are increasingly seeking propositions that are sustainable and delivering impact, however, it is not just these segments. New Morningstar research finds that over 70% of investors are at least mildly interested in sustainable investments.

There are different products arriving to market all the time and with all the pressures from investors, the whole area of sustainable finance is set to grow rapidly. It will be important to do your homework and check that sustainable investments are doing what they are saying, an area that is of increasing concern to regulators.

In the era of digital, big data, artificial intelligence and social media, the power of the crowd travels at the speed of light when it comes to disseminating information and knowledge – investment managers and intermediaries are advised to pay attention here – if you are not offering investment products that make a real difference on the Sustainable Finance agenda, prepare to lose assets and customers at an increasing rate.

Arabesque is a global quant asset manager that uses ESG big data and machine learning in its investment process and is a leading provider of sustainability metrics through its platform. The firm’s mission is to contribute to the mainstreaming of sustainability by taking a science-based approach to ESG investing and data.

“Advancements in technology now enable us to gather and understand vast amounts of sustainability data and allow us to more clearly assess the performance of companies,” says Ciaran McCale, Head of Media and Communication at Arabesque.

“We’re in a new era of transparency with more corporate information available than ever before and new technologies to unlock its value. This has coincided with a widespread shift in demand for more sustainable options from both investors and consumers. I think we’re only at the start of a global movement where sustainability is integrated into every part of our lives, and finance will be key in this transition.”

Simon Puleston Jones, a former lobbyist in the financial services industry based in the U.K is now establishing a new global social network called WokenUp for those who want to give back and make a difference.

“People want to buy from, work for and invest in companies with purpose," says Puleston Jones, "making a difference on social and environmental causes is, therefore, a core strategic imperative for the leading companies of tomorrow."

When consumers demand to see a positive impact from sustainable investments in their pensions by threatening to move $40 Trillion of assets, their investment advisors and managers will listen, which will precipitate the interest of policymakers and governments.

Money talks, but it’s no small change when it comes to citizens taking action for the sake of the environment and humanity. Your pension and long term plans are irrelevant if the planet is under water.

In the very near future, the only investments that most people will make will be sustainable ones and this is a change whose time has come.
Lawrence Wintermeyer
Lawrence Wintermeyer
Contributor

I cover fintech, digital, and investment and promote policies for a transparent, secure and quality digital financial future for everyone.

[waldron] 25/4/2019 20:36

25 Apr 2019, 13:04
Kerstine Appunn
Green Party: CO2 tax is not enough
Climate & CO2
Süddeutsche Zeitung

As new warnings of drought show that "the climate crisis is intensifying", the German government must implement effective climate policies, and fast, Annalena Baerbock, co-head of the opposition Green Party says in an article by Cerstin Gammelin for Süddeutsche Zeitung. A carbon tax is not enough, Baerbock argues. “We need a mix of instruments, strong regulation and, most of all, a coal exit law,” she told the paper, adding that a carbon tax would have to price a tonne of CO2 at at least 40 euros. This would increase the cost of a car journey from Berlin to Munich by 3.50 euros. Revenue from a CO2 tax should go back to consumers in the from of “energy money” which would benefit lower-income households with smaller carbon footprints most.

Baerbock’s comments come amid an ongoing debate on carbon pricing and its possible design in Germany, as the country looks for ways to meet its greenhouse gas reduction targets. Earlier this week, SPD politicians suggested a CO2 price of 20 euros in the heating and transport sectors as a start. Chancellor Angela Merkel has promised a decision on a carbon price policy by the end of the year and several ministries have commissioned studies to define the design of such a scheme.

[cassiopeia] 31/5/2017 21:29

All good points by Meg.

[captain hindsight] 13/1/2017 09:03

HTTPS://wattsupwiththat.com/2017/01/12/with-record-rainfalls-in-california-another-nye-lie-bites-the-dust/

[captain hindsight] 10/1/2017 10:10

Https://wattsupwiththat.com/2017/01/09/150-mph-winds-8-feet-snow-possible-from-next-california-storm/

[captain hindsight] 10/1/2017 10:09

Https://wattsupwiththat.com/2017/01/10/the-william-happer-interview/

[captain hindsight] 23/12/2016 11:44

LolMark Doggett, of Environment Victoria, says the key to a sustainable Christmas is to substitute "greener" alternatives into our celebrations.And the best place to start might be with the greenest of all traditional symbols – the tree. The debate is about whether pine or plastic Christmas trees are better for the environment. According to Mr Doggett, the answer is neither."But there is no reason you can't use a potted plant, which you can take outside after Christmas," he says.The Sunday age, 9 Dec 2007

[captain hindsight] 23/12/2016 10:35

"The city of Las Vegas is now drawing 100 percent of its power from renewable energy sources""The effort moved closer to reality about a year ago when the city expanded its partnership with NVEnergy""NVEnergy's GreenEnergy program allows large customers to contract for an added cost with the company to power their facilities. Customers that opt to receive all of their energy from renewable sources pay a slight premium for that.""Coal currently accounts for 8 percent of NVEnergy's generating resources, compared with 74 percent natural gas and 18 percent renewable resources."

[captain hindsight] 23/12/2016 10:23

https://notalotofpeopleknowthat.wordpress.com/2016/12/22/siberia-sizzles-at-58c-below/

[captain hindsight] 21/12/2016 16:58

https://m.youtube.com/watch?v=6ckwCXxoOdg

[captain hindsight] 11/12/2016 09:01

https://wattsupwiththat.com/2016/12/10/what-is-next-for-weather-and-climate/

[captain hindsight] 10/12/2016 11:55

https://tallbloke.wordpress.com/2016/12/10/massive-potential-for-new-oil-production-technique/

[captain hindsight] 10/12/2016 11:52

HTTPS://wattsupwiththat.com/2016/12/10/the-doe-vs-ugly-reality/

[captain hindsight] 09/12/2016 12:58

Peter Bingle sets out five important lessons we can take from the Sleaford & North Hykeham by-election.So, after all the nonsense spoken about a new Lib Dem dawn, realpolitik has returned with a vengeance thanks to the good folk who voted in the Sleaford & North Hykeham constituency.The crushing Tory victory will be closely analysed for what it says about the mood of British voters in what is amusingly called a post truth society. In my experience the Lib Dems never dealt with truth let alone post truth!There are several major lessons from the by-election which need to be noted and actioned...The first is that Theresa May's government is surprisingly popular with voters eighteen months after a general election. The temptation to call an early general election must now be enormous. Her party is fractious and she has a small overall majority. Yet she knows that the Tories will win a huge majority if she goes next year and she won't need to implement the boundary changes.The second lesson is that the Labour Party is in a desperate position. In Richmond Park the Labour candidate polled fewer votes than there are Labour Party members in the constituency. In Sleaford, the Labour candidate came fourth as opposed to second in 2015. For all the enthusiasm of the Corbynistas, the Labour Party is facing a political wipe-out at the next election.The third lesson is that there is still a section of the electorate who are attracted by UKIP. The new leader, Paul Nuttall, is well placed to exploit Corbyn's unpopularity with Labour voters in the North of England who voted for Brexit and have a Labour MP who voted Remain.The fourth lesson is that there is no actual or likely Lib Dem breakthrough. Richmond Park was a one off. It doesn't help having a leader who reminds older voters of George Formby. I doubt Tim Farron is en route to Sleaford to congratulate his candidate!The most important lesson of all is that if the PM holds her nerve and triggers Article 50 she is on course to win a huge political mandate whenever the general election is called.Imagine if you can what it must be like at this moment to be a Labour MP. You have a leader you didn't vote for, a policy agenda you don't support and a job which is likely to end at the next election. Little wonder they are so depressed. Most of them want an early election so they can be put out of their misery.The Tories on the other hand are well poised to govern for a very long time. The voters of Sleaford & North Hykeham have brought us all back to our senses for which they deserve our gratitude- See more at: