Despite the progress made through the Paris Climate Agreement, most governments are failing to act with the required scale and urgency to limit greenhouse pollution and transition to clean energy. Short-term decision making and the political influence of the fossil fuel lobby continues to obstruct and delay government action. In this context, the business community and the finance sector in particular has a critical role to play in driving climate action.
Financial market sentiment can have a power that is just as real as that of legislators by impacting the cost and availability of capital and shaping real-world investment decisions.
In relation to climate change and fossil fuels, investors balance the risk of loss that might result from carbon intensive investments with the opportunity cost of foregone profits. The underlying assumption is that they’ll be able to pick the right time to get out of fossil fuels – not too late but not too early. But financial markets are subject to herd mentality, where shifts in market sentiment and fear of loss can trigger a rapid shift – and a self fulfilling prophecy.
Our goal is to work with social movements to drive change harder and faster in the finance sector, to hold companies accountable for the gap between rhetoric and action, and to hasten the stampede of capital out of fossil fuels and into clean energy.
Making coal uninsurable
As a founding partner of the Unfriend Coal network, we’re campaigning to hold the insurance industry to account for the gap between their rhetoric and actions, and to stop both insurance and re-insurance companies underwriting and investing in coal projects.
Shifting the giants
We’re working with a diverse network of global partner groups and finance analysts to explore ways to shift the largest investors on the planet out of fossil fuels.