Yet again the Green party is lecturing us on ‘ethical investing’.
Can anyone see a problem with that?
The Green Party has called for the New Zealand Superannuation Fund to quit its investments in companies producing fossil fuel.
The fund’s chief executive, Adrian Orr, said it took the issue of climate change seriously and expected its exposure to fossil fuels to fall over time, and investment in renewables to rise.
“But a simple divestment call? The world is just not that straightforward,” he said.
The fund, set up by the previous Labour Government to partially pre-fund future New Zealand Superannuation payments, had $676 million invested in companies directly involved in fossil fuel production as of last June. That represented about 2 per cent of the fund’s assets.
Greens co-leader Russel Norman, in a paper released yesterday, makes an ethical case for not investing in companies whose activities are literally fuelling potentially catastrophic climate change.
He also points to a financial risk of stranded assets, citing analysis by the International Energy Agency and other bodies that the world’s coal, oil and gas companies already have in their proven reserves at least three times as much carbon as can be burned without exceeding the internationally agreed target of limiting global warming to 2 degrees Celsius. Â Read more »