A sustainable economy, address the impacts of climate change, and climate risks and opportunities?

Alister Sneddon, CTO

Here are the top 3 special climate change focused insights for June 6th, prepared by Alister, our CTO.

Today’s Brief

  • PAX World Funds: The Transition to a Sustainable Economy
  • RAND Corporation: Resilience and Adaptation Strategies Can Address the Impacts of Climate Change
  • Wellington Management: Brewing storm — Are investors discounting climate risks and opportunities?

The Transition to a Sustainable Economy

  • History is stuffed with examples of societies that confronted existential challenges and failed to solve them: Easter Island, the Anasazi in Chaco Canyon, the Norse settlers in Greenland, the Maya in Central America.
  • Today, the challenges are planetary in scale, and failure to solve them could mean that societies across the globe collapse.
  • We are in the midst of what many experts see as the sixth great extinction.
  • Unlike the first five, this one isn’t attributable to external events like a meteor impact or flood volcanism or loss of marine oxygen.
  • This one is on us: It is a consequence of things like greenhouse gas emissions, overuse of fresh water, overexploitation of natural resources, rapidly expanding population and pollution without accountability.

Genuine Scores for the top 3 Mixed Asset funds

  • Columbia Thermostat Fund, 94
  • Vanguard LifeStrategy Income Fund, 93
  • SEI Multi-Asset Income Fund, 93

Resilience and Adaptation Strategies Can Address the Impacts of Climate Change

  • By the end of this century, Chicago could face the kind of searing summer heat that Las Vegas sees now.
  • Phoenix could hit 110 degrees, 60 or more days a year.
  • That’s not wild speculation.
  • It’s the official position of 13 federal agencies on climate change, released late last year with a warning: Local governments need to do more to prepare.
  • Every road they build, every storm drain they put in, will have to hold up under conditions that modern civilization has never seen.

Genuine Scores for top 3 Equity funds

  • Versus Capital Multi Manager Real Estate Income, 99
  • Fidelity Advisor Series Growth Opportunities Fund, 97
  • Fidelity Series Real Estate Income Fund, 97

Brewing storm: Are investors discounting climate risks and opportunities?

  • Climate change is an asymmetric, systemic, and largely unaddressed risk for investors.
  • Climate-related asset repricing may be inevitable, potentially leading to widespread dispersion of security values.
  • In our view, investors do not need to believe in climate change to recognize that addressing the risks and opportunities in their portfolios is good capital stewardship.
  • Companies focused on climate change mitigation and adaptation are an evolving investment opportunity set.

Genuine Scores for the top 3 Bond funds

  • PGIM Core Short-Term Bond Fund, 100
  • iShares Ultra Short-Term Bond ETF, 100
  • BlueOrchard Microfinance, 100

Want to get the the Genuine Impact app?
You can download the Genuine Impact app for iOS and Android devices on our website, https://www.genuineimpact.co.uk

All the best,
Alister and the Genuine Impact Team

p.s. all Genuine Scores are accurate as of the 23rd of April