May 15, 2018
I have two grandchildren, aged 5 and 8. I have no idea how long I will be around for them, but I do know I want to provide them with some security. How do I choose an investment that will be solid and profitable in 30 to 50 years from now?
I consulted three specialists. None could provide me with a climate risk analysis of their portfolios. One of them said that blue chips are always safe investments. Safe? Last December, the State of New York and the City of New York announced that they would be divesting their vast pension funds-390 billion dollars to be precise. Their decision is to cease all new investments in entities with significant fossil-fuel related activities.
Divesting is a trend. The World Bank announced in December that it will no longer lend money for gas and oil exploration. Norway has also started to work on divesting their enormous sovereign-wealth fund that is far bigger than that the NYC and State combined pensions.
Divestments do not happen immediately, but #keepitintheground has now been officially adopted by France’s president who declared that his country will no longer grant any licences for oil and gas exploration in its various territories.
I may not be a finance man, but my knowledge of environment will guide my choices of investments to the vast pool of start up companies addressing the real issues of the economy that will grow: the low carbon economy. Energy efficiency, Green retrofitting, Green construction, electrical cars and buses are some of the sectors where real profit will be realised.KajEmbren