30/07/2024
The failure of Sustainable and Climate Change finance........
If you are wondering why we keep breaking the "Warmest Day Ever" records on a ...daily basis please spend a bit of time to watch this video.
https://www.ft.com/video/1eeebd90-25d4-4421-a175-deedcdbf9c18
The self proclaimed importance of certain actors in the financial industry will blow your mind. 🤯
Whilst people are so self absorbed with their own accomplishments or the corporate machinations of others, there is a line I am quoting half way through the video.
"In the first quarter of 2024 we still saw inflows into sustainability-focused funds in Europe to the tune of something like $11bn, whereas in the US it was the single worst quarter that Morningstar has recorded. Nearly $9bn came out of sustainability funds. E, S, and G are three letters that do not leave your mouth if you are on marketing trips across various states in the US, if you're an asset management firm."
If we want to stabilize the global average temperatures at 1.5 degrees above pre-industrial levels we need to invest approx. $5 TRILLION per year - and the participant thinks that $11B is actually worth mentioning. Also see some air of optimism towards the end of the video.
So what is the takeaway?
👉🏼Investment is still mainly directed to AI, Technology, Oil & Gas and other brown industries will little incentive to change fast enough.
👉🏼We are 80% short on the investment required to stabilize the climate.
👉🏼Time is running out.
👉🏼If the Planet is thrashed where will you spent your dividends ?
ESG investing was until recently a buzzword in global finance, the party was in full swing, the marketing material was everywhere and the money was rolling in. But asset managers are no longer boasting about their environmental, social and governance credentials after poor performance, greenwashing....
