Responsible Investing & Climate Change


Climate Change 3

Two recent news items regarding responsible investment have caught my attention.
 
The first was last November, when Sweden’s central bank said it was dumping Alberta’s bonds as it moves to divest from issuers with high carbon-dioxide emissions.
 


Alberta Rejects Oil-Sands Stigma After Sweden Dumps Bonds
 
Then more recently, former Bank of Canada Governor, Mark Carney stated that he believes fossil fuels could become a “stranded asset”. He has called for financial institutions to disclose and eventually divest from these exposures. 
 
Firms must justify investment in fossil fuels, warns Mark Carney
 
Increasingly central banks, pension funds and other global investors are factoring climate change into their portfolio decisions. From personal experience, I would add that retail investors are becoming more aware of their investment exposure to fossil fuel as well.
 
An increasing number of fossil fuel free investment options have recently become available to the retail investors. As of October 2019, all of IA Clarington’s Inhance SRI funds are fossil fuel free. Talking with a number of investment firms, there will be additional offerings in the coming months.