Banks support task force on climate change
Mark Carney, Governor of the Bank of England, is encouraging banks and companies to show their support for the Task Force on Climate-Related Financial Disclosures, which he set up in his role as chairman of the Financial Stability Board.
The task force wants companies to disclose their exposure to global warming. Banks are required to disclose loans they have made to companies with climate-related risks or those that produce large carbon emissions.
London is a centre for climate change-related finance, with finance companies issuing green bonds in 40 different countries.
Michael Bloomberg, chairman on the task force, said:
“Climate change poses both economic risks and opportunities. But right now, companies don’t have the data they need to accurately measure the risks and evaluate the opportunities.”
The initiative highlights the need for companies to be transparent about their business activities. Many large companies have ethical policies designed to minimize environmental damage that their manufacturing processes create. Companies are concerned about the labour practices of their Far East manufacturing partners.
Many investors consider ethics when investing, and there are ethical funds that cater for them. Some funds only invest in companies that deliver social and environmental change, but many ethical investment funds do not perform as well as other funds, with only three featuring in the top 20% of top performing funds. Investors that want to invest ethically need to be careful about what funds they pick.
If you want ethical considerations to influence your wealth management planning, talk to an independent financial advisor.
INVESTMENTS – THE VALUE OF UNITS CAN FALL AS WELL AS RISE, AND YOU MAY NOT GET BACK ALL YOUR ORIGINAL INVESTMENT
Sources used: https://www.triodos.co.uk/en/personal/ethical-investments/socially-responsible-investment-funds/?gclid=CjwKCAiAmb7RBRATEiwA7kS8VH8j_5- GUgnBr42T7755f2fW5KwKmG1vF5Ph-VS7yj3Pi0Wy3XSipxoCc5EQAvD_BwE
https://www.theguardian.com/business/2017/dec/12/uk-banks-join-multinationals-pledge-come-clean-climate-change-risks-mark-carney
