According to a Morgan Stanley Report, USD 50tn are required to stop global warming. USD 50tn is a big chunk of money, but you know that we have already invested nearly USD 47tn for our future? 🤔
Yes, USD 47tn are invested into the world’s pensions. But, less than one 1% of this money that we invest for the future is invested into low carbon solutions. This seems off to me.
We are putting money aside for our future, but we are giving it to companies that are destroying the future(đź–•!).
Well, “we” is not precise enough. It’s our money in the pension funds that is invested for the future, but not into it!
If you ask the average retail investor, many have good intentions. And as we want to invest sustainable, we pour our money into ESG investments. They have more than doubled last year.
Unfortunately, as Tariq Fancy has pointed out multiple times: ESG is not the answer, it might make things even worse, as people think they do good whilst they don’t.🤦
So what to do, we have reserved USD 47tn, it just seems to be in the wrong place, right? To keep my answer short: Activism!
We can rebuild the system from within, and USD 47tn can make that happen. If our USD 47tn in pensions start taking a stance on sustainability, companies will have to act.
I believe, we need our pensions to become our activists, to make our money work for a future worth living.
Report Morgan Stanley’s USD 50t
https://www.morganstanley.com/ideas/investing-in-decarbonization
BBC’s USD 47tn:
https://www.bbc.com/future/article/20210126-how-you-invest-your-money-can-help-tackle-climate-change
Doubled ESG investment:
https://www.morningstar.ca/ca/news/218367/sustainable-fund-and-etf-assets-doubled-in-2021.aspx
Fancy’s Secret Diary: https://medium.com/@sosofancy/the-secret-diary-of-a-sustainable-investor-part-1-70b6987fa139 (Must read imho)
ESG / Impact placebo effect study:
