Investing to Curb Climate Change
Climate change is one of the biggest challenges facing humanity and investors can be part of the solution.
Scientists agree that burning fossil fuels for energy is changing our climate. The earth’s climate warmed 1.9° Fahrenheit over the last century (source: NASA) and greenhouse gas emissions caused by burning coal, oil, and natural gas for energy are the leading cause. Unless we figure out how to curb carbon emissions, the environmental impacts of climate change are expected to get much worse. The 2019 report from the Intergovernmental Panel on Climate Change (IPCC) predicts that global temperatures are likely to increase by 2.7°F (1.5° Celsius) before the year 2052. That may not seem like an enormous jump, but the IPCC agrees that this change will lead to life threatening sea level rise and weather events including heat waves and storms.
Divesting from the fossil fuel industry may not directly impact those companies—at least not yet, more on that later—but divesting does free up capital that investors can then put into innovative alternative energy companies and other industries that are working to solve the climate crisis at scale.