Go green or bust: Investors say sustainability is key for business
In keeping with the UN’s focus on climate change and sustainability, the UN Office for Partnerships and the United Nations Foundation convened 450 global investors with over $20 trillion in assets at the fifth “Investor Summit on Climate Risk & Energy Solutions” yesterday at UN Headquarters in New York.
An esteemed panel of financial and investment experts stressed how climate change will reshape all aspects of our life, including investment strategies to reduce carbon footprints. Investors had earlier signed an action plan that provides a framework for sustainable business, from improving investment management to better assess climate-related risk in portfolios to strengthening disclosure and governance on climate change and sustainability.
These steps are bolstered worldwide by growing investments in clean energy. Ethan Zindler of Bloomberg New Energy Finance noted that investments (exempting nuclear and natural gas) reached $260 billion in 2011, an increase of 5 percent since 2010 amidst a still-recovering global economy. This past year also saw the US attract the most new clean energy investment, with China following in second.
More proof to the viability of sustainable investing came by way of GE Ecomagination Vice President Mark Vachon, who pointed to their portfolio earnings of over $100 billion. Vachon said that there is a false choice today between great economics and great environmental performance.
These are not mutually exclusive, as GE has shown. “Organizations that are not on board run a high degree of risk of becoming irrelevant by not only missing a big market opportunity,” said Vachon. “But not being relevant because you’re not responding to a very obvious marketplace signal.”
Where policy has moved slowly, Jack Ehnes, CEO of CalSTRS, pointed out that the private sector has made strides, including persuading the US Securities and Exchange Commission (SEC) to require mandatory climate-risk disclosure by companies and financing up to $1 trillion internationally for clean energy technologies. These steps, small considering the scale of the challenge, still represent a promising start.
Mindy Lubber, President of CERES and Director of the Investor Network on Climate Risk, declared that the participants at this summit were evidence of a powerful narrative. “They are acutely concerned about climate change,” said Lubber. “And are transforming their investment strategies now to avoid its worst impacts. They see the opportunities and the risks of not acting.”
UN Photo/JC McIlwaine








