Divestment and Positive InvestmentStopping investment in fossil fuels is likely to be the single biggest action you can take to make an impact on climate change. Positive investments in clean technology will, of course, multiply that impact.
There are multiple ways to make a difference and give yourself a more secure future. |
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Divestment and positive investment isn’t just about your pension. It’s also about your banking, your savings and your insurance. It’s about asking questions of the charities and organisations you support, your employers, your council and other public institutions.
The good news is that ‘green investments’ are now often out-performing ‘conventional’, and the financial world is waking up to this and providing more options.
Even if you do not have savings or a pension to move, you can write letters telling our public institutions that this is a matter that is important to you, and that you expect them to align their investments with Bristol’s 2030 carbon neutrality target (now widely adopted).
Below are some suggestions. None are financial advice and you must make your own decisions.
The good news is that ‘green investments’ are now often out-performing ‘conventional’, and the financial world is waking up to this and providing more options.
Even if you do not have savings or a pension to move, you can write letters telling our public institutions that this is a matter that is important to you, and that you expect them to align their investments with Bristol’s 2030 carbon neutrality target (now widely adopted).
Below are some suggestions. None are financial advice and you must make your own decisions.
- Current Account Banking
- Pensions
- Insurance
- Savings
- Divestment and Positive Investment Campaigning
1. Current account banking
A 2019 report found that Barclays remains Europe’s biggest funder of fracking and coal. Although HSBC has made some significant divestment decisions, it will continue to fund new coal plants in Indonesia, Bangladesh and Vietnam until 2023 (another 40 in Vietnam alone). The Royal Bank of Scotland, parent company of NatWest, appears to be moving in the right direction but has not committed to full divestment. Lloyds has committed to not financing new coal plants or mines but will continue to work with existing coal clients – i.e. business as usual, and no commitments on divestment from oil or gas.
The best option if you want to know that your bank is having the maximum positive effect is Triodos, which does not invest in fossil fuels at all and which positively invests in renewables.
A 2019 report found that Barclays remains Europe’s biggest funder of fracking and coal. Although HSBC has made some significant divestment decisions, it will continue to fund new coal plants in Indonesia, Bangladesh and Vietnam until 2023 (another 40 in Vietnam alone). The Royal Bank of Scotland, parent company of NatWest, appears to be moving in the right direction but has not committed to full divestment. Lloyds has committed to not financing new coal plants or mines but will continue to work with existing coal clients – i.e. business as usual, and no commitments on divestment from oil or gas.
The best option if you want to know that your bank is having the maximum positive effect is Triodos, which does not invest in fossil fuels at all and which positively invests in renewables.
The Co-operative does not invest in fossil fuels but it has not confirmed that it is not investing in nuclear. Bizarrely, it has a policy of not investing in renewables.
If you think that switching your bank will be a hassle, and possibly some payments won’t be made, the good news is that the UK now has a 7-day switch guarantee. The bank you are moving to will make the process easy for you – but looking through your bank statements and listing your regular payments will give you extra peace of mind.
If you think that switching your bank will be a hassle, and possibly some payments won’t be made, the good news is that the UK now has a 7-day switch guarantee. The bank you are moving to will make the process easy for you – but looking through your bank statements and listing your regular payments will give you extra peace of mind.
2. Pensions
It’s amazing how few of us know anything about where our pensions are invested, even though it’s often our biggest ‘pot’ of money and we are all hoping for security in our old age. Fossil fuel investments are looking increasingly risky as institutional investors are backing away from potential ‘stranded assets’ (eg new oil or gas fields) and the market has moved significantly in 2019. Is your pension provider up to speed?
If you are not able to move your pension (because it’s a company scheme or you have already retired) it is still worth writing to your pension company and asking where your top ten investments are. You may get an unpleasant shock – even if you have chosen an ethical fund. At the very least, demonstrate your interest and express an opinion.
Here is advice from the Ethical Investment Association, about how to find an independent adviser and below are some links to companies advertised online and in ‘green’ magazines. These do not come with any recommendation or personal knowledge. Do ask probing questions about what each company includes as ‘ethical’.
It’s amazing how few of us know anything about where our pensions are invested, even though it’s often our biggest ‘pot’ of money and we are all hoping for security in our old age. Fossil fuel investments are looking increasingly risky as institutional investors are backing away from potential ‘stranded assets’ (eg new oil or gas fields) and the market has moved significantly in 2019. Is your pension provider up to speed?
If you are not able to move your pension (because it’s a company scheme or you have already retired) it is still worth writing to your pension company and asking where your top ten investments are. You may get an unpleasant shock – even if you have chosen an ethical fund. At the very least, demonstrate your interest and express an opinion.
Here is advice from the Ethical Investment Association, about how to find an independent adviser and below are some links to companies advertised online and in ‘green’ magazines. These do not come with any recommendation or personal knowledge. Do ask probing questions about what each company includes as ‘ethical’.
3. Insurance
Where does your insurance money go? Well, most of it is invested to deliver a return that can be paid out whenever it is needed. In the last couple of years, many of the biggest insurance companies have begun to stop insuring coal mines and power plants and have pulled much of their investment from the industry. This is specifically because of the risks climate change poses to the insurance industry.
But we all need to be asking our insurers which industries they are insuring, and where funds are invested – there’s a long way to go. Please write to your insurer today with these two simple questions. Tell them you are worried about climate change, and want their policies to be in line with a 2030 carbon neutrality goal.
Here is a list of ethical and/or green insurers.
Where does your insurance money go? Well, most of it is invested to deliver a return that can be paid out whenever it is needed. In the last couple of years, many of the biggest insurance companies have begun to stop insuring coal mines and power plants and have pulled much of their investment from the industry. This is specifically because of the risks climate change poses to the insurance industry.
But we all need to be asking our insurers which industries they are insuring, and where funds are invested – there’s a long way to go. Please write to your insurer today with these two simple questions. Tell them you are worried about climate change, and want their policies to be in line with a 2030 carbon neutrality goal.
Here is a list of ethical and/or green insurers.
4. Savings
When it comes to savings, there are many more positive options. Again, none of these come as financial advice. With crowd investing, it is important to heed the warnings that money can be lost if businesses fail and make sure the site has a good portfolio system so that you can keep track of investments.
When it comes to savings, there are many more positive options. Again, none of these come as financial advice. With crowd investing, it is important to heed the warnings that money can be lost if businesses fail and make sure the site has a good portfolio system so that you can keep track of investments.
- Triodos has a wide range of savings accounts, plus a crowd investment site.
- Bath and West Community Energy often offers bonds, with a minimum investment of £100.
- The Bristol Energy Cooperative has bond offers from time to time. One has just closed on a hydro project at Netham weir in Bristol.
- The Ecology Bank has accounts but they always seem to be closed to new applicants!
- You can save with Charity Bank but it’s not entirely clear that their investments are fossil fuel free. Please ask.
- The Nationwide is one of our few remaining mutuals but you will need to ask how fossil-free they are.
- The Co-operative has savings options but please see notes under ‘Current Account Banking’.
- Ethex is a crowd investment site for big community projects. The telephone advice / information service has been found to be good.
- Trine enables you to invest directly in renewables in Global South countries, mainly in Africa. It’s a very ‘transparent’ site, so you can always see where your money is and when the next return is coming. Communication with the investment team is easy – by email.
- Crowdcube is one of a number of other crowd investment sites, which include some ‘green’ businesses.
5. Divestment and Positive Investment Campaigning
Despite Bristol's green reputation the Avon Pension Fund is still investing heavily in fossil fuels. An online petition to all four former Avon councils and the Fund itself pushing for total fossil fuel divestment is currently gathering signatures online. It’s open to everyone in the former Avon area to sign so if you live in Bristol, South Gloucestershire, North Somerset or Bath and North East Somerset please sign it and share it among your friends. Fund members should also contact their union branch and their local councillors to ask for their support. Bristol Unison and Unison nationally are supporters of divestment.
Extinction Rebellion are encouraging everyone to stop allowing their money to fund fossil fuels through their Clean Up Your Act campaign. There are two pledges on their website you can sign on to. The first is that you will challenge your bank on their role in the climate emergency and the second is to divest your money from fossil fuel production. They are keeping track of how much money has been divested as part of this campaign and the total already stands at over £1million.
If you want to get more involved in campaigning for finance to be in line with our climate obligations more generally, here are some links you may find useful.
Despite Bristol's green reputation the Avon Pension Fund is still investing heavily in fossil fuels. An online petition to all four former Avon councils and the Fund itself pushing for total fossil fuel divestment is currently gathering signatures online. It’s open to everyone in the former Avon area to sign so if you live in Bristol, South Gloucestershire, North Somerset or Bath and North East Somerset please sign it and share it among your friends. Fund members should also contact their union branch and their local councillors to ask for their support. Bristol Unison and Unison nationally are supporters of divestment.
Extinction Rebellion are encouraging everyone to stop allowing their money to fund fossil fuels through their Clean Up Your Act campaign. There are two pledges on their website you can sign on to. The first is that you will challenge your bank on their role in the climate emergency and the second is to divest your money from fossil fuel production. They are keeping track of how much money has been divested as part of this campaign and the total already stands at over £1million.
If you want to get more involved in campaigning for finance to be in line with our climate obligations more generally, here are some links you may find useful.
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