“Investors have been keen to show their green credentials by shunning carbon-intensive industries. The cost of that virtue signalling is now becoming apparent.”
[COMMENTARY]Most ethical and sustainable investors shun investing in companies producing lots of carbon in their operations. My thinking is twofold. Firstly, it’s a moral issue if we choose to make fossil fuels ‘scarce’ thereby increasing the prices of everything, including food. Then, should governments subsidize food prices and fossil fuel purchases for the poor? (Look what’s happening in many countries like Sri Lanka with its food and energy riots?)
Secondly, there’s no way we can bring about a clean energy future without massive increases — and numerous new mines — in the production of copper, lithium, cobalt, silver, etc.
Hence, this author makes an interesting point. Incidentally, many major oil companies are moving into renewables, and mining companies are getting serious about ESG!
Why investors may need to pivot from ESG towards carbon-intensive industries, by Frederic Guirinec, April 1, 2022, Money Week, UK.