12 green questions
Posted on May 22, 2007 by Matthew Solle
Filed Under Investing |
To kick off our new Socially Responsible Investing (SRI) centre Interactive Investor would like you to consider a few questions. Please feel free to add your comments at the end and whether you agree or disagree:
1. The effects of climate change are over hyped. It’s part of a natural process and is not a man made phenomenon.
2. Climate change is the biggest single issue facing the world today.
3. Most companies are not facing up to their responsibilities in reducing carbon emissions, merely exaggerating small measures.
4. Everyone has a responsibility to reduce their own carbon footprint. If we all pull together it will be possible to reverse the effects of climate change.
5. Green technologies and the investment opportunities they present are simply a bubble that will burst like the dotcom boom.
6. The development of new green technologies presents an investment opportunity that private investors need to take time to learn about. Those in the know will make a lot of money.
7. I look at a company’s green and ethical position when considering investment.
8. I’m sure ethical considerations will play a more significant role in my decisions about investments in the future.
9. Climate change is more a money making opportunity than a man-made disaster.
10. Green and ethical considerations are one in the same and should be treated as such by the investment community.
11. I only invest in funds/companies when they have a strong performance, regardless of their green or ethical credentials.
12. It’s too late to stop climate change.
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4 Responses to “12 green questions”
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How timely to see this post. Hollywood’s former Terminator, now turn Governor of California, has been here in Vancouver this past week and there has been a focus on green house issues.
The “experts” are now saying that they consider 2050 the point of no return and serious action is required today. Whether you believe or not, it seems prudent to give the benefit of doubt and make decisions to reduce your greenhouse footprint.
I for one applaud the increase in gas prices we have seen here in Canada and the US in the past year or two. I am from British Columbia and I went to work in Ontario in the late 80s. I felt great pride that we British Columbians took pride in the environmental and we drove small cars. I thought Ontario was disgusting for the the enormous size of their vehicles.
Much to my disappointment British Columbians have abandoned their environmental pride for the monster SUVs. And with these over sized vehicles driving has become less safe for cars through reduced vision with how they prevent you from seeing ahead. I was considering a small SUV for all the wrong reasons, so I could be as high as they are so I could get back the road vision I had before they proliferated the roads.
Already I see an increase in smaller vehicles and that is a good thing.
We sent out the above questions to a selection of registered Interactive Investor users and got back the following diverse answers:
“Not sure on 4th question - I think everyone needs to do their bit, I’m just not sure it’s going to make a difference. I work with a lot of companies world-wide that are pushing the general green philosophy (not just CO2, but reduction in lead and other hazardous substances). I do not believe this will go away, but will actually become more stringent for all companies.”
“Please help to stop the brainwashing regarding climate change. Much of the climate change science is flawed and the coverage by most of the media is flawed and biased.”
“I think this survey misses the real point. Carbon trading is a joke, and is just a mechanism to allow companies who should know better to try and salve their conscience by buying salvation. Similarly, biofuels have been caught in the hype, and it now transpires they add more to global warming than they save because of other side effects. A much overhyped industry.”
“I don’t necessarily agree with climate warming and think the effects are over hyped but as a business we have to be aware that other people think it is real and so we ready to adapt.”
“I strongly believe that any business that moves towards what is ill defined as ‘ethical’ or ‘green’ is contributing to an awareness that we cannot continue exploiting a finite resource and just expect it to all go away and that nice nature will redress the balance. Cynical carping will derail many, but, akin to the often fuzzy logic for ‘green’ there are equally illogical thoughts against the concept. Remember the dotcom bubble may have burst, but the businesses that survived have done so well.”
“Question 3 is misleading. It is not possible to reverse the effects of climate change only to lessen them.”
“The debate is often presented as ‘What can we do to stop climate change?’ As with King Canute, we don’t have this option. It would be much better presented as ‘What can we do to adjust to climate change and mitigate its effects?”
“I have little confidence in the experts - I can remember when they said the next Ice Age was coming - but I do agree that we should be less profligate of resources. Like over emphasis on Health and Safety, climate change has the ability to hamstring ordinary people and businesses to the detirment of all.”
“Individuals will be led by their finances; few people are sufficiently affluent to put green issues ahead of cost when making purchasing decisions. It is therefore down to corporations to lead the way and government incentives to ensure that green issues are given the consideration they deserve.”
“We are too late and can do too little to make a change, the 60s and 70s were the worst years and we should have been doing something then.”
“As a scientist, I have always been concerned about resource use. Then, an economist produced a report, commissioned by Thief Brown, and I realised the whole thing is a con - and a week later, Brown increased taxes. Oh how I wish facts and not politics held sway.”
“However Green the Company, investors will not keep money in it for long if it is not profit making. Green technology sufficiently developed to replace fossil fuels is still a long way off- i.e. in the R and D stage, and therefore unlikely to be cash generative for some considerable time.”
“I think the super powers are avoiding the issue and just trying to bluff the world. Unless they and specially America take this as a serious issue very little will be achieved, though I agree that all of us should contribute to achieve the required goal.”
“Why didn`t anyone spot this before it got so serious?”
“I am a scientist and have some involvement with biofuels. I am sceptical about the hype of global warming because too many people are pushing their own agendas. My personal view is that there are too many people in certain parts of the world, i.e. SE England, India, China and these clumps can distort the situation. If I had to guess, and I am not religious, I think that the world population may decrease in the next fifty years due to a combination of lack of resources and or famine/disease etc.”
“Climate change is a natural cyclical phenomenon. Carbon emissions have a minimal impact on climate change. I have not the slightest doubt whatsoever - the climate change bandwagon is a great excuse for yet more taxes. This government will milk the taxpayer with yet another round of revenue raising tax scams.”
“As with all other investments there will be good and bad companies in the green sector and the length of time before new companies become profitable will vary immensely. I shall be very wary!”
“Natural resources and recycling are more important than climate change which has been hijacked by politicians. There are issues not being addressed and lies /halftruths being told. Water is likely to be the most important issue in the near future.”
“With respect to investing it is still essential to ensure that the company or fund in which you are investing is well managed and understand the market, companies with a ‘green tag’ because its fashion will not survive in the same way that many dotcommers failed.”
Here’s a round up of our recent survey (questions above):
Question 1 - 27.3% disagreed
Question 2 - 34.2% agreed
Question 3 - 44.7% agreed
Question 4 - 37.3% agreed
Question 5 - 36% disagreed
Question 6 - 55.1% agreed
Question 7 - 37.4% neither agree or disagree
Question 8 - 32% agreed
Question 9 - 45.6% agreed
Question 10 - 31.3% disagreed
Question 11 - 31.3% agreed
Question 12 - 44.9% neither agree or disagree
This was an interesting post. Climate change is a critical issue. If the supply of useable oil is eventually going to run out, then new energy sources need to be found our energy needs to be conserved.
A growing population with a greater appetite for high standard of living resources, suggests that new energy sources need to be found.
Alternative energy seems to be a logical area for expansion. As traditional energy prices increase, alternative energy should act as a substitute product.
Socially responsible investing convers more than just alternative energy. It covers corporate governance, employee treatement, equality, working conditions, and other areas.
While socially responsible investing seems to be a great idea, few attractive mutual funds exist because of high expenses. There are few no load, low expense socially responsible funds. Hopefully, this will change in the future.