Climate Reporting Performance and Investing

For 12 years, the EcoAct report has been produced. It reminds us of the responsibilities of global organisations and the impact they are having on climate change. An important aspect is the showcasing of best practices and how share prices reflect real improvements versus ‘greenwashing’. The full report can be found here: https://eco-act.com/sustainability-reporting/ecoact-report-ftse-progress-climate-goals-stalled-since-cop26/

If the war in Ukraine has taught us one thing, it is that we should not rely on fossil fuels from regimes that appear to be run by dictators with military power, such as Russia, and we should be aware that other friendly countries might not remain as collaborative as they are now. As a country, we should be independently producing our own energy and more reliant on sustainable energy.

This feeds into the value of companies that exhibit these qualities. Although not a universally held view, I feel that a ‘one off’ additional tax on energy companies’ short-term national benefits may not be as sustainable as those companies investing in alternative energy solutions over the longer term – after all, that is their primary purpose.

Investment markets consider their business plans carefully and assist them with their plans that will, in the long term, benefit the UK. We aim for lower carbon emissions and cleaner air and water. If we achieve all these while remaining self-sufficient, I think we can rely on better long-term returns on investments and pension funds. Information is power. Make your own mind up starting with this report. Investment returns can, over the long term, reward doing the right thing.