‘Australia divestment war shows investment is now the main climate change battleground’:
http://www.theguardian.com/sustainable-business/2014/oct/29/australia-divestment-war-anu-investment-climate-change-battleground
For those following the rapid change in the climate change debate towards a more financial system orientation, a remarkable situation is unfolding in Australia that will act as a pointer to future developments elsewhere.
In response to the fossil fuel free divestment campaign, the pride of the Australian education system, the Australian National University (ANU), finally caved to pressure and decided to engage the services of a socially responsible investment analyst firm to look at climate change issues.
As a result of this analysis, ANU declared that it was divesting in a few carbon exposed companies. Nothing new in this, many organisations have done the same, but what quickly ensued was an extraordinary series of high-powered public clashes that could be a taste of things to come in other countries’ backyards.
The story exploded into a heavyweight battle between current and former prime ministers, party leaders and global notables. And the current Australian government showed that it simply doesn’t know the difference between socially responsible investment, fossil fuel divestment and financial risk management. The Australian Prime Minister himself Tony Abbott declared the ANU’s decision “stupid” and said that entities following suit were depriving members of good returns.
Those members to which Abbott referred are increasingly aware that over half of their average pension portfolio is in carbon-exposed investments, so they don’t need to worry too much that they are depriving the fossil fuel based industries of capital. Quite the opposite as less than 2% of portfolios is in low carbon alternatives representing a 25-1 gamble on business as usual for high carbon investments.
In a stunning misreading of the tea leaves, the Australian prime minister went further, announcing that coal was good for humanity. But with a 40% slump in coal prices since 2011, it sadly isn’t good for retirement savings and unlikely to benefit from better carbon risk management by investors.
The notion that this debate could occur over a decision to divest less than 1% of a portfolio that doesn’t rank even near the 50 largest in Australia is a strong pointer to the rest of us that investment is now the main climate battleground. Globally, ANU’s investment size doesn’t even make the top 1000.
An interesting thing to follow, this divestment from fossil fuels stuff. It’s certainly one way to ensure companies that lobby around democracy (ie bribes to elected officials etc) do feel the heat of public opinion, and in that i’m all for it.