In context of the concern that people have about their retirement funds, Green noted, "That's why they need to be asking questions. Coal, oil, and gas are increasingly risky investments, particularly for people on fixed incomes," she pointed out. Green explained that that her organization was working to create an "on-ramp" accessibility, so that the public could familiarize themselves with both the "shift in consciousness" and the risks associated with fossil fuel companies in the face of climate change concerns.
Fossil Free Funds is a tool that is easily accessed via the Internet, and measures the climate risk of mutual funds. Yet as Green emphasized, divestment is only one part of the equation. It's a two-part solution which includes changing perceptions and pivoting mainstream thinking. There is a growing push from consumers for Socially Responsible Investment (SRI) and greater transparency. In addition, financial advisors may not be aware of the options available.
Presently trading on the New York Stock Exchange, is a new fossil-free investment from Etho Capital. It's an exchange-traded fund (ETF) that excludes all fossil fuel companies. It also chooses equities based on climate efficiency. I reached out to Ian Monroe, a lecturer and visiting scholar at Stanford University, who is also the President & Chief Sustainability Officer at Etho Capital to learn more. Via e-mail he wrote:
"I started working with climate-efficiency data
while teaching courses on solutions to climate change at Stanford, and
looking at the sustainability of investments. If we really want to solve
climate change, a huge piece of the puzzle is for investors around the world to
move trillions of dollars out of dirty energy and into climate solutions. Fortunately,
this is starting to happen.
We've created the ETHO ETF to make it easy for everyone to align their investments with their personal values. It is based on our Etho Climate Leadership Index, which invests in the most climate-efficient companies, while removing irresponsible industries (like fossil fuels, weapons, and tobacco). Our performance has shown that you really can invest in ways that are better for both the planet and your portfolio."
"People are the cornerstones of social movements," Green underscored when we spoke. "The more people pay attention to the way big corporations do business, the more they will understand the impact it has on their lives."
Tell Your Governor: Support the Clean Power Plan
This article originally appeared on the website Moms Clean Air Force
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