Opinion
Earth Capital Series Framing the Importance of a Just Transition for the Discerning Investor
Date published: Tuesday, 17 August 2021
Earth Capital examines the implications and challenges that can arise from the climate change transition that we are facing. This four-part series looks at the importance of managing these conflicts in an equitable and just way and how investors can contribute to a more sustainable future without impacting returns.
We invite you to read this series in more detail below.
Series 1: Framing the climate change issue for the discerning investor
At Earth Capital, we believe we have reached a fork in the road with two distinct transition pathways at the extremes to a low carbon economy. Either we plan a managed transition, minimising disruption and losses and maximising new opportunities, or through our inaction we find ourselves undergoing a chaotic transition, with the potential for disruption, uncertainty and perhaps even violent geo-political conflict.
We invite you to read the first of our four-part series, which looks at these two pathways in more detail.
Read Series 1Series 2: Why impact Investing is a response to climate change and fiduciary duty
At Earth Capital, we believe that investing for positive impact is a necessary strategy to meet our fiduciary duty in the wake of the climate disaster and is critical to the post-pandemic recovery. Instead of being a siloed corner of an investment portfolio created for marketing purposes, impact investing is set to play a powerful role in driving the transition to a more sustainable future.
Read Series 2
Series 3: The importance of managing conflicts towards a just transition
For far too long, agents at all levels of the economic system have shied away from admitting the size and scope of the climate crisis. Now, faced with the inconvenient truth that the climate crisis is a real and severe problem, we need to move faster and at a larger scale. However, the path to a low carbon economy is riddled with transition risk. So how can financial institutions and corporations effectively navigate the road to a more sustainable and equitable economy?
Read Series 3Series 4: How investors can create an imagined and just future by removing climate change conflicts
Achieving a just transition will help address issues such as inequality, poverty and hunger, all of which have been acknowledged by the United Nations’ Sustainable Development Goals as being some of the greatest global challenges we face. However, none of these challenges will be achieved by a series of short-term quick fixes. At Earth Capital, we believe that we need to move away from profit-driven short-termism towards building sustainable industries and systems that deliver long term growth and investor profits. To achieve this, we need to rethink our time horizons and relearn the ability to meaningfully make intergenerational plans to achieve what is needed.
We invite you to read the final paper in our four-part series looking at how investors can contribute to a just and equitable future.
Read Series 4
