The 2015 Paris Agreement set a goal of keeping rising temperatures within a range of 1.5 to 2.0 degrees Celsius above pre-industrial levels. Without a shift to a low-carbon world, scientists predict
Yet along with the risks come opportunities for innovation and investing. Despite the odd few climate change deniers, global sentiment has already shifted. Expect to see governments, private corporations, and individuals
Here’s how to ‘climate-proof’ your investments in the new decade:
You know a sea change is here when hard-nosed CEOs of America’s biggest companies issue a
Whether this is simply window dressing (“greenwashing”) or a true pivot toward sustainable business remains to be seen. However, the statement is a recognition that climate change is also an economic issue and, by doing business better, a company may reduce its financial risks and increase its opportunities to attract investors.
According to a
In the Information Age, more companies are asset-light; their value relies less on tangible assets such as factories and machinery and is based more on intangible assets like intellectual property — and reputation. Investor activism, abetted by social media, has increased reputational risks for companies who attempt to “greenwash” their reputations or refuse to disclose their ESG practices.
The corollary is those firms who are helping to fight climate change are more likely to attract investment dollars—from both large institutional funds who have environmental mandates and individual investors alike. As an article in
Next Generation Investors
Get Woke, Make Money
The stock market has delivered strong gains over the past decade and it may still have “gas in the tank”; however, most analysts say the probability of outsized gains going forward is muted given currently high valuations. And, despite generous monetary and fiscal policies, growth has been modest in developed countries. Investors may have to adapt to lower returns going forward—except in the sectors fighting climate change.
In a widely read whitepaper, co-founder and chief investment strategist Jeremy Grantham of GMO LLC, a respected Boston-based asset manager, outlines the business rationale for investing in green energy. One of his main points is that energy-efficient companies don’t require booming economic growth in order to generate profits. These
Both private and public sectors are investing in promising startups as well as ‘green economy’ enterprises. In the past, some of these investing opportunities have only been available to institutional and high-net-worth individuals but, as demand grows, retail investors will have access to
Rita Silvan, CIM™️, is personal finance and investment writer and editor. She is the former editor-in-chief of ELLE Canada magazine and is an award-winning journalist and tv media personality. Rita is the editor-in-chief of
Golden Girl Finance, an online magazine focusing on women’s financial success. When not writing about all things financial, Rita explores Toronto’s parks with her standard poodle.