Green Transformation Investing
The Corona virus is a watershed event, and we believe it is a massive inflexion point pointing to a revolution in the public and private response to Climate Crisis and the related investment opportunities.
Inflexion points are rarely obvious as they occur. They are most recognisable in hindsight!
It is possible we are living through one now. If so, there is and will continue to be, a massive change in the geopolitical public and private policy ideas and consequent multilateral actions, investment and innovation to mitigate and reverse the causes of the Climate Crisis.
A number of different but related events have happened and seem to be converging around the Climate Crisis. In summary these are:
- Consequences of the 2008 financial crisis and revisions to financial and economic governance and the realisation that the current model of Capitalism must be changed. i.e a move to much broader cost/benefit models that now include social, community, and environmental factors.
- Growing awareness and understanding of the causes, scale, and impact of the Climate Crisis among global leaders in the public and private domains.
- Improvement in communication and effectiveness of the scientific facts and messages and an increasing number of credible testimonials (e.g., United Nations, James Hansen, David Attenborough, Mark Carney, Greta Thunberg and the younger generation.
- The election of President -Elect Biden and Vice President – Elect Harris and consequent change in US policy on Climate Crisis, giving rise to the expression “Hug a tree to hug Biden”!
The efforts and actions to mitigate the COVID Pandemic have also made it clear that many proposed actions to mitigate Climate Crisis, previously declared impossible/impractical or both have now been executed (albeit as an unintended/unexpected consequence). This has the potential to be a game-changer as it is recognised by the next generations as a potential realistic start to mitigating the Climate Crisis. That is the serendipitous positive consequence of the COVID Pandemic.
The confluence of stimulating the economy post COVID, people feeling more vulnerable, the ever-mounting evidence of global warming and the zero-interest rate environment will catalyse activity and expenditure on a scale not since World War II.
Green Transformation Investing covers all aspects of investing under the labels of Environmental, Social and Governance (ESG), Principles of Responsible Investing (PRI) and the UN Sustainable Development Goals (SDGs).