Thursday, October 22, 2009

Climate Change Denial Fund Managers

This is a little late but last week at a meeting of Council pension funds (LAPFF), Catherine Howarth of Fair Pensions gave a presentation on their recent survey about the importance of climate change to large investment fund managers. See the actual report here.

There was a lot of interesting stuff in what she said. Fair Pension's actual conclusion is that climate change is not given the importance it deserves due to lack of client demand, short termism and the low price of carbon. But what I found fascinating is that 11% of these major fund managers did not consider climate change to be an important investment issue. In fact they considered it as either unimportant or very unimportant. 11% also do not engage with companies about the risks and opportunities of climate change. This is a significant chunk of our fund managers who have £6 trillion of asserts under their control made up of predominantly ordinary workers pension and insurance funds.

This "climate change denial" argument is sheer madness. Maybe only 11% of major funds take this view but we are talking about the big boys and girls of the investment fund world. Nor should we forget that only 39 of the top 100 managers bothered to reply to the survey (despite being requested to do so by many of their clients). So the figure of 11% is in all probability far too small and not truly representative about the scale of the problem.

So, what we have is at least a tenth (probably significantly more) of the biggest fund managers in this country are in effect climate change deniers. While some may argue about the actual threat posed by climate change surely nobody can deny that it will change the investment landscape whether you like it or not and that our economy and many companies are being shaped by this agenda.

Lets at least try and change things by the very simple act of increasing client demand (by pension funds) over our fund managers by asking questions and adding to the pressure for them to take the issue seriously and take meaningful action over climate change.

4 comments:

Anonymous (Airport) said...

So you agree we should do something about Climate Change?.

Are you aware Newham Council approved expansion of London City Airport from 76,000 to 120,000 per year. At a time we should be reducing our CO2 emmissions, Newham Councillors agreed to increase them.

To top it all, British Airways have commenced a flights to New York. BA turned a 100 seater airplane and converted to a luxury 32 seater with lie-flat beds. So the carbon footprint is 3 times higher then ordinary passengers.

But it gets WORSE, the departing New York-bound flight from London City is required to refuel at Shannon Airport because the short runway at London City cannot accommodate an A318 with full fuel.
So you have to waste more fuel to land and take-off.

This runway limitation proves London City Airport is unfit for purpose and should never have been built.

The first day of the New York service, which was launched one week after Willie Walsh of British Airways pledge to the United Nations that aviation would deliver deep cuts in carbon emissions!!

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Check the video - it is FUNNY!
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http://londoncityairportfighttheflights.blogspot.com/2009/09/protest-against-new-york-flight-from.html

John Gray said...

Hi Airport anon
I will only commicate with you on the basis that you insist that you are not a far right supporter (despite all!) I would agree that campaigners need to engage on these issues and not fall into the trap of being all being dismissed as some barmy loons. This is actually the first comment you have ever made to my knowledge that does not make you seem a complete idiot. Long may it last. I don’t agree with your conclusions but that is democracy for you. Hopefully - welcome to the club.

Anoymous (Airport) said...

I don't get this. You agree on that London City Airport should not be expanded on grounds of Climate Change.

But at the same time, you have been against me as I have been complaining that residents in Beckton, Custom House and Silvertown and beyond are suffering from aircraft NOISE. My living room is interrupted by aircraft noise. And it is only going to get worse!. Even to the point where you were willing to help me pack my bags!

John Gray said...

Hi Airport Anon

Of course I don't agree with you on this issue. When you wake up in the morning do you know the difference between night and day? Dawn and Dusk?

For once you did not appear to be a complete and utter dipstick.

Perhaps I spoke too soon?

You were the one to say you were leaving! I was only offering to help..