Deep green investing: a closer look

A divestment rally at Harvard

A divestment rally at Harvard

As you’ve no doubt heard, Bill McKibben and his allies at 350.org have launched a  a national campaign to persuade colleges, universities, churches, foundations and, yes, people like you and me, to stop investing in the fossil fuel industry. The campaign raises interesting questions as, I’m sure, McKibben hoped it would. Among them:

Does divestment make sense as a strategy to curb climate change?

If those of us who are concerned about climate change want to align out investments with our beliefs, what options are available?

In a column called Deep Green Investing published last week by Ensia, a lively new online magazine about environmental solutions, I argued that, by itself, divestment will probably not accomplish much. Having said that, the campaign could prove useful as one of a number of tactics being deployed by 350.org, the Sierra Club and others that are aimed at bringing about political change–namely, taxes or caps on global warming pollutants, EPA rules to curb coal-burning, etc.

In The Nation, Mark Hertsgaard argues that these grass-roots climate efforts have already produced results–350.org galvanized opposition to the Keystone Pipeline, which may have persuaded President Obama to delay a decision after the election, and the Sierra Club’s Beyond Coal campaign has, along with cheap natural gas, helped drive the decline of coal in the US. Hertsgaard writes:

As important as the victories themselves was how they were won. Both the Sierra Club and 350.org eschewed the inside-the-Beltway focus and top-down political strategy of big mainstream environmental groups, as exemplified by the cap-and-trade campaign. Instead, they emphasized grassroots organizing at the local level on behalf of far-reaching demands that ordinary people could grasp and support. Their immediate goal was to block a specific pipeline or power plant, but their strategic goal was to build a popular movement and accrue political power.

This is the political context in which the divestment movement makes sense. It won’t shake up the oil industry–the Ensia story explains why–but it’s a useful organizing tool.

But what might the campaign mean for investors? Today, I’m taking a closer look at a couple of “deep green” broadly-diversified mutual funds that have decided, unlike most other funds that market themselves as green or socially responsible,” to cleanse their portfolios of companies that extract fossil fuels. [click to continue…]

2012’s green business heroes

Bill McKibben does the math

Bill McKibben does the math

Some say, and with reason, that 2012 was the best year ever. Never in the history of the world has there been less hunger, less disease and more prosperity. Of course there’s plenty to worry about–the fiscal cliff, gun violence, chaos in Syria and the Congo–as always there will be. But, to paraphrase Martin Luther King, the long arc of history bends towards a more just and sustainable world.

In the little corner of the world that occupies much of my attention–the places where business and sustainability intersect–it has not been a good year. Global greenhouse gas emissions continue to rise. We’re burning more coal, oil and gas than ever. Policy is stuck, in the US and internationally. This will be the hottest year on record in the US, and still people don’t accept the science of climate change. Go figure.

That said, in this final blogpost of 2012,  I’d like to salute some people (again, mostly from the world of business and sustainability) who fought the good fight during the year  just past. Some are business people, others are politicians, activists and even journalists, but they are all doing what they can to bend the arc of history. They’re my green business heroes for 2012. [click to continue…]

Should “green” funds invest in fossil fuels?

Bill McKibben’s groundbreaking Rolling Stone story (Global Warming’s Terrifying New Math) and 350.org’s “Do the Math” divestment campaign raise important and difficult questions about fossil fuels. One that is starting to roil the world of socially-responsibly investing is this: How should mutual funds that strive to be “green” or “sustainable” or “socially responsible” deal with the fossil fuel companies in their portfolios? Should they divest, as McKibben argues?

That was the topic of a column I wrote last week for the Guardian Sustainable Business, which generated some noteworthy responses. It’s part of the British newspaper The Guardian, which has one of the most popular English language media websites in the world. Here’s how the column begins:

“We’re going after the fossil fuel industry,” Bill McKibben tells about 1,800 cheering fans in a Washington, DC, theatre. “They’re trying to wreck the future, so we’re going after some of their money.”

Al Gore notwithstanding, McKibben – an author, academic and founder of the grassroots climate group 350.org – is America’s leading environmental activist. His 21-city Do The Math tour begins a campaign to persuade colleges, churches, foundations and governments to divest their holdings in coal, oil and natural gas companies.

“It does not make sense,” McKibben tells the Washington audience, “to invest my retirement money in a company whose business plan means that there won’t be an earth to retire on.”

He’s right about that, but the divestment campaign raises a thorny question: where can investors who worry about climate change put their money?

Divest for our Future, 350.org’s divestment website, recommends “environmentally and socially responsible funds“. The trouble is, the biggest and best-known mutual funds that call themselves environmentally and socially responsible also invest in fossil fuel companies. They evidently haven’t heard McKibben’s message.

Is this green?

The column–you can read the rest here–goes on to report that the Parnassus Equity Income Fund  holds about 14% of its assets in oil, natural gas companies and electric utilities that burn fossil fuels, that the TIAA-CREF Social Choice Equity Fund owns shares in dozens of oil and gas firms including Hess, Marathon and Sunoco, and a pair of shale gas giants, Devon Energy and Range Resources, that the Calvert Equity Portfolio  has about 10% of its portfolio in fossil fuels, including  Suncor, which says on its website that it was “the first company to develop the oil sands, creating an industry that is now a key contributor to Canada’s prosperity,” and that the Domini Social Equity Fund has, among its top 10 holdings, Apache Corp, an oil and gas exploration and production company.

Are you surprised to learn that these funds invest in oil and gas companies, including those in the Canadian Tar Sands? Perhaps naively, I was. [click to continue…]

Do the math: Bill McKibben takes on Big Oil

Most Americans own cars. Most cars run on gasoline.

Can we be persuaded to think of the oil industry as the enemy? What about the coal industry, which supplies more than a third of the electricity we use?

“Movements need enemies,” declares Bill McKibben, the author, activist and leader of grassroots group 350.org. So last week, with allies including the Sierra Club and Greenpeace, McKibben and 350.org began a 20-city, month-long coast-to-coast tour called Do the Math that targets the fossil fuel industry. It’s designed to invigorate the climate movement by calling upon colleges, foundations and governments to sell their stock in coal, oil and natural gas companies.

The campaign is modeled after the 1980s South Africa divestment campaign, which helped pressure the government to enter negotiations that eventually led to the end of apartheid. To underscore that point, South African Bishop Desmond Tutu will make appearances, on video, during the tour.

It’s time to focus on the polluters, McKibben said last week by phone from Seattle, where the tour kicked off. “We’ve spent so much time focusing on our elected officials, and so little time focusing on the players behind them,” he said.

“The fossil fuel industry is now the tobacco industry,” he told me. “They are now a rogue force in our society.”

Not surprisingly, the oil companies aren’t happy about any of this. Rayola Dougher, a senior economic advisor at the American Petroleum Institute, told me that McKibben’s attacks on U.S. oil companies, if they lead to higher carbon taxes or caps, would raise energy prices and risk American jobs, while doing little or nothing to curb greenhouse gas emissions. “Demonizing an industry is not a good starting point for dealing with a big and complex issue like this one,” she said. [click to continue…]

When changing a lightbulb isn’t enough…

 

What have you done lately about climate change?

In the last two weeks, about 700 Americans – with more to come – have been arrested in front of the White House, calling on President Obama to block the construction of the $7 billion, 1700-mile Keystone pipeline project that will bring Canadian tar sands oil to largest refineries in the United States.

They include Bill McKibben, the writer, activist and founder of 350.org, who led the protests; James Hansen, NASA’s leading climate scientist; Gus Speth, who lead the Council on Environmental Quality under President Carter and went on to become dean of the Yale School of Forestry; Greenpeace executive director Phil Radford; actresses Daryl Hannah and Margot Kidder; and my friend and rabbi, Fred Scherlinder Dobb of Adat Shalom Reconstructionist Congregration in Bethesda.

Standing behind them are the nation’s leading environmental groups–Greenpeace, the Sierra Club, the Natural Resources Defense Council, the Environmental Defense Funds, Friends of the Earth, the National Wildlife Federation and others. In a letter to Obama, they described the Keystone pipeline ruling as “perhaps the biggest climate test you face between now and the election.”

“There is not an inch of daylight between our policy position on the Keystone XL pipeline, and those of the very civil protesters being arrested daily outside the White House,” the groups said.

There are strong arguments for and against the pipeline, which we’ll get to in a moment, but first, a few words about McKibben and  the protestors. I went to the White House to talk with them because I share their belief that climate change is not just another issue, but the defining issue of our time. To be sure, it’s not an issue that mobilizes people, at least not yet, for a number of reasons: You can’t see carbon dioxide pollution, climate science is complex (but clear in its basics), global warming is a slow moving threat and the troubled U.S. economy has crowded virtually every other concern off stage since the summer of 2008. [click to continue…]

The technology that could save the planet

What if the technology we need to curb climate change turns out to be not a solar panel, smart grid or electric car battery but social media powered by cellphones, laptops and online networks like Facebook?

350.org event in Copenhagen

350.org event in Copenhagen

As I prepare to leave today for the climate negotiations in Copenhagen, I’m struck by–actually, flooded, overwhelmed, swamped and dizzied by–the sheer volume of user-generated content coming out of Copenhagen, much of it created by people in their 20s and 30s. Groups like 350.org and the Youth Climate Movement (“It’s getting hot in here”) and TckTckTck (“right now your leaders are deciding our future”). It’s not just the kids, of course: Traditional NGOs are also blogging and tweeting like crazy from Copenhagen, as are the mainstream media (Juliet Elperin of The Washington Post is worth following on the Post Carbon blog), and even global companies are tapping into the power of social media to spread information. The real-time carbon counter below comes courtesy of Deutsche Bank’s Asset Management division; it was launched earlier this year in Times Square and now can be seen on blogs and websites around the world.

www.know-the-number.com

Our Climate is Changing!



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Of course, those who want to block climate regulation are using social media as well. The controversy known as ClimateGate has been [click to continue…]