Live markets, Tuesday August 10, 2021

The latest IPCC climate assessment may have sparked a new wave of anxiety about the future of the planet, but ethical fund managers say it could also be the perfect opportunity for Australians to put their money there. where they say.

John McMurdo, director of ASX-listed Australian Ethical Investments, said this morning that investors have already voted with their portfolios by switching to climate-friendly funds over the past 18 months, and last night’s report was just another push to stop supporting fossil fuels. and companies with high carbon emissions.

According to Australian Ethical Investments, if Australia’s $ 3 trillion super pool were devoted entirely to climate-friendly funds, that would be the equivalent of removing 78 million tonnes of carbon from the atmosphere. Credit:Janie Barrett

He said switching from their super to a climate-conscious fund could quickly lead to a positive change in the behavior of many companies, or even make them unsustainable, if they continue to pollute at the same levels.

“If governments, businesses and consumers all take drastic action to meet net zero goals, we can dramatically improve our outlook and minimize the damage,” said McMurdo.

“Perhaps the best way for the average Australian to achieve this is to switch his super fund to a climate friendly fund.”

Australian ethical calculations released this morning showed that if this happened, it would collectively lead to a reduction in the carbon footprint equal to half of all Australian household emissions.

The company calculated that the difference between putting Australia’s $ 3 trillion super pool in a climate-friendly fund, and one that was not, amounted to a lower carbon footprint of around 78 million dollars. tonnes of carbon (CO2e) per year, the same as 4.6 million average Australian households, or 16.9 million cars on the road.

“The people who redirect these funds to climate-friendly businesses could collectively help push governments and businesses to take action to set and exceed the net zero emissions targets needed to achieve strong and sustainable emission reductions. of carbon dioxide and other greenhouse gases. “said Mr. McMurdo.

“And while stopping investing in carbon-intensive companies does not stop the emissions produced by those companies overnight, the large-scale sale of shares in these companies sends a strong public signal and makes a big difference. more difficult for them to raise new funds. “

The IPCC report showed that Australia has already warmed by 1.4 degrees since 1910 and that in all realistic scenarios analyzed Australia will fail to meet the 1.5 degree warming target. the Paris agreement..

UN Secretary-General Antonio Guterres said Monday’s release of the Working Group I report was “a code red for humanity.”

In an interview with the Sydney Morning Herald and Age Earlier this year, McMurdo said the country’s move towards ethical investing had exploded since 2019, first driven by climate-conscious participants in the wake of the catastrophic summer bushfires there. 18 months and then, of course, the coronavirus pandemic.

The Sydney-based fundie said that while the virus initially plagued the stock markets, it also made investors rethink and seek long-term sustainable value in ways they’ve never done before.

Australian Ethical brought its funds under management to over $ 6 billion in the June quarter, with net inflows up 56% to $ 1.03 billion for the full year. The company’s ASX-listed shares rose 1.7% to $ 8.50 at 2 p.m. AEST.

Most of the biggest ethical ETFs were ahead on Tuesday, with BetaShares’ Global Sustainability Leaders and Australian Sustainability Leaders funds each up 0.4%. Vanguard’s ethical international ETF rose 0.6% to $ 74.22, and the VanEck MSCI International Sustainable Equity ETF rose 0.3% to $ 29.70.

The VanEck MSCI Australian Sustainable Equity ETF was just ahead. Russell’s Australian Responsible Investment ETF lost 0.2 percent.

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