Change 8 – Invest responsibly

Change 8 – Invest responsibly

The last Super 8 is about money, which is an area many people don’t think about in terms of their carbon footprint. However, where we invest can have a big impact on our carbon footprint and our planet. The global financial sector is responsible for financing and enabling many of the activities that cause greenhouse gas emissions, such as fossil fuel extraction, deforestation and intensive agriculture. Here are some ways you can invest responsibly and reduce your carbon emissions:

Ditch fossil fuels 


The most powerful way to invest responsibly is to divest from fossil fuels and invest in companies who are supporting the transition to a greener economy. You can do this by moving your money from banks, pension funds or other financial institutions that support fossil fuel companies, and choosing ones that provide low carbon goods and services. You can also join campaigns and movements that pressure financial institutions to divest from fossil fuels and align with the Paris Agreement. If fossil fuel companies extract all their oil and gas reserves and burn them the world will go way past 2°C of warming whilst the profits accrue to a tiny share of the world population.

Choose sustainable investing
The most rewarding way to invest responsibly is to choose sustainable investing options.

 

There are two main options. 

You can consider environmental, social and governance (ESG) factors in addition to financial return. This will help to move your investments away from the worse offenders but you may still be investing in high emissions sectors like oil and gas, chemicals and airlines.
Even better look for investments which target sustainable investments and which are helping the transition to Net Zero. You can do this by looking for funds, stocks or bonds that have a positive impact on the climate and society, such as green bonds, social impact bonds or climate funds. You can also look for ratings and certifications that indicate the sustainability performance of the investments, such as ESG ratings, green labels or carbon footprints.
Move to a bank that’s stopping lending to fossil fuel companies

                                                      
The more finance that’s available to fossil fuel companies the more resources they can dig out of the ground. Look for banks which have stopped all lending to oil and gas companies or ones with plans that are aligned with a 1.5C world. Every year the Banking on Climate Chaos report can show you how the large banks around the world are doing.

Did you know?                                                                
The Bank of England researched whether divesting from fossil fuels would harm the money someone can make on their investments. Their conclusion was clear: investors can divest without hurting their financial performance.

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