Sustainable Investment

Calculating value of biodiversity: BNP Paribas Asset Management

Biodiversity and the value of ecosystem services are a critical part of a healthy global economy, with investors working to calculate risk and opportunity on investment portfolios.

BNP Paribas Asset Management has named biodiversity as one of its key thematic priorities, and is undertaking a number of projects to pursue biodiversity related topics across its different areas of sustainable investing. Financial Standard

Ethical investments are outperforming traditional funds

Environmentalists cheered by huge improvements in air quality during the lockdown – and the collapse in coal power generation – have another reason to celebrate. Even the stock market has gone in their favour.

A detailed number-crunching of environmentally sustainable funds has revealed that they have outperformed traditional funds across the board – beating them during the pandemic as well as during the 10 years up to and including the coronavirus sell-off.

The data, from the global research agency Morningstar, comes amid growing evidence that environmentally focused investing – once pigeonholed by City traditionalists as only for a vegan/hippy minority – is becoming mainstream. This week, Vanguard, one of the world’s biggest fund managers, launched two ethical index funds aimed at UK investors, while Aviva, Britain’s biggest insurer, unveiled a “climate transition” fund. The Guardian – 13 June 2020
Evidence suggests that environmentally focused investing is becoming mainstream

Why divest from fossil fuels?

Fossil fuel divestment can have a real impact on a company’s prospects. By refusing to invest in companies that are causing climate change we are denying them a social licence to operate. Australian Ethical Investment
David Macri
14 November 2019

UN Calls Global Climate Outlook ‘Bleak’

Greenhouse gas emissions are rising and the window for action closing. Still, there are some hopeful trends. Bloomberg
By Eric Roston, 26 Nov 2019

What is ‘ecological economics’ and why do we need to talk about it?

As environmental crises and the urgency to create ecological sustainability escalate, so does the importance of ecological economics. This applied, solutions-based field of studies is concerned with sustainability and development, rather than efficiency and growth. Also, given that cities account for 70-80% of global economic activity and associated resource use, emissions and waste, they are central to finding solutions to the challenge of sustainability. Property Observer

Investors Should Worry If Climate Goals Are Missed, Report Warns

Investors be warned: If the planet heats up by more than two degrees, it’s going to get a lot harder to make money.

That’s the conclusion of investment advisory firm Mercer LLC, which modeled the financial fallout from two, three and four degrees Celsius of global warming through 2100 in a report released Monday. Bloomberg
By William Wilkes and Christopher Flavelle
April 9, 2019

To divest or not to divest? That is the question

… should (investors) simply divest from “bad” companies, or should they be using their stake to change the inner workings of companies? Money Management
22 March 2019