Author Topic: Addressing climate change  (Read 8225 times)

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Offline Omni

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Re: Addressing climate change
« on: May 18, 2019, 12:12:47 pm »
Investor risk statements include all kinds of improbable risks simply because disclosing a risk, no matter how remote, is better than not disclosing it. That does not mean it is serious or even a likely problem. It is only a possible problem. It is a mistake to take an investor risk statement as something that is actually relevant to investors. Any knowledgeable investor will understand that fossil fuels are needed to power our economy and that is not likely to change much over the next 20 years.

Apparently some pretty successful investors disagree with you.

Jeremy Grantham, co-founder of GMO, one of the world’s most influential asset management companies, said the financial case for divestment was compelling. “Investors with long-term horizons should avoid oil stocks on investment grounds. They face a sustained headwind. Ethical arguments for divestments are simply not necessary. They are a pure bonus,” he said.

Another new report, from Genus Capital Management in Canada, said its fossil free fund had outperformed a benchmark of standard stock market indices by almost 2% per year over the last five years. The company’s Fossil Free CanGlobe Equity Fund is a mix of Canadian and global stocks. “At the five-year mark, we can conclusively say: divesting from fossil fuels pays,” said CEO Wayne Wachell.