COP26 of course has started and one big aspect I want to discuss, is the new rules for firms. We of course know that the battle over the worlds climbing degrees is heating up and it’s the time for big business to lay out some hard plans. So why am I particularly interested in recent announcements?
Environmental, Social and Governance (ESG) investing is big business, as fund managers wrestle over the stocks and bonds of environmentally, socially and governmentally active companies, that they deem to be strong growth prospects. I therefore point out this, if companies have a plan that makes them look good on the environment, they are already probably shouting out about it and I would guess that everyone else is likely keeping quiet for a reason.
So, I would guess that other companies will throw a bunch of unbacked plans out there in a ‘greenwashing’ style marketing dump. Will this simply muddy the waters and make all those fund managers jobs that much harder? Hard to say for certain but I imagine there will be some sifting through potentially opaque pledges of planting a nonspecific number of trees because they burn tonnes of coal every year……
Either way, if I cared about how the companies I invest in treat the planet, I would be much more comfortable making that investment now, than in the future.
Drop me a message if you too feel the same.
The value of units can fall as well as rise, and you may not get back all of your original investment.