With so much in the press recently about climate change something has to be done and Sir David Attenborough’s appearance recently at the International Monetary Fund in Washington where he was interviewed by managing director Christine Lagarde is perhaps another gauge of how seriously economists and financiers are taking climate change.
If you are concerned about how your money is being used in your pension it is important to be as informed as you can. Enable’s IFA’s know that the corporate world is neither oblivious nor uncaring indeed some banks, including RBS and HSBC, are no longer financing ‘extreme’ fossil fuels such as tar sands and in the future they are likely to be screening assiduously for climate risks. But shifting to a more sustainable model will be an enormous undertaking for businesses and governments. This ability to shift to a more sustainable model is what was debated at the IMF event.
Lagarde said “£4 trillion has been spent globally since 2015 on fossil fuel subsidies to industry, much of it in the developing world. Removing those subsidies could cause job losses and hardship in the short term, even if the long-term benefits are clear. Individual countries often are reluctant to cut subsidies or to impose carbon taxes if rival nations refuse to do the same, for fear of damaging their ability to compete.”
Attenborough said ‘The natural world is so delicate at the moment it needs all the protection it can get,’ ‘sometimes that will mean governments will have to make decisions that are painful and cost money.’
The reason companies are responding to climate change fears comes down to cash and the fear of losing it, and the fact big City shareholders are telling them to clean up their act. Enable’s IFA’s in Bishop’s Stortford can help you look sensibly at greening your pension.
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