But What Happens Next?

The rallies today in the major capitals calling for climate action were certainly encouraging. But what happens next?

As I have said in previous postings, marching in the streets and starting social media campaigns are certainly highly visible activities. But how much real change will they effect, and what else can be done.

The adshel situation showed that 'people power' could make an impact. However, within a day of returning the ads, they were being defaced in homophobic attacks. So, the ads were back, but maybe attitudes were not altered that much at all.

That is why we assist people to review where there investments are, particularly their super, and help them invest in line with their personally held values. By supporting companies financially that you support morally, they are financially encouraged to broaden the work they are doing. Avoiding and withdrawing from companies that you do  not support sends a real message that can affect companies at the share price.

Finally, you can go even further and and show your activism positions at the shareholders meetings, and put forward your point of view to the people who make decisions.

This financial 'activism' is not nearly as visible as taking to the streets. However, it may be more long lasting, and effective in getting the message across to the decision makers, in a language that they understand.


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What else gets you riled up?

The last few days have seen some really powerful examples of, for want of a better term, people power. There have been some really evocative issues and people have put themselves out there to stand up for things they believe in.

First, there was 'slutwalk'. Then live exports of cattle became an issue. Then over the last day or so, there has been the adshel controversy. While there has been some debate as to the language used, and redeemability of the word slut, what can't be debated, is that these issues have struck a chord, and that people have chosen to act.

These three highlighted issues are important. Regardless of the wording, there is no excuse for rape, and no excuse to blame a victim for being raped. The treatment of the animals in the overseas abattoirs was appalling to watch. Finally, in 2011, are people still scared of seeing two men hug?

But thinking of the positive messages makes me question other things. I don't wish to take away from these issues, but it gets me to thinking about what else riles people up?

I noted the other day that the Australian Government (with your money) invests in companies that manufacture nuclear weapons for Indian submarines via the Future Fund. Is that enough to get you riled up? Or how about your super fund investing (again, with your money) in companies that make weapons, use child labour or damage the environment?  Is any of that enough to get you riled up?

Most people I know would not support weapons manufacture, child labour or degradation to the environment. Except, that they do passively via their superannuation investment. Most people I know would not eat chocolate produced by slave labour in West Africa , yet they own the companies that produce it.

Moreso, the Greens are now getting 10% and upwards in votes at elections, yet only 2.5% of money invested in Australia is done via ethical and responsible investment. Why the gap?

If these things rile you up, then by all means march in the street. Send an email to your MP. But don't support  these things passively. It is possible to support want you want to support, and avoid what you don't like without it affecting your end returns. You can continue your activism by withdrawing financial support for companies that conduct themselves in ways you don't agree with.

To try and find out a little more, I will be asking this over on the Facebook page tomorrow. I would really love your feedback, so please, comment below, or head over to the Facebook page.

PS. News has come through that one of the bus shelter ads has been defaced. Really?


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Australia Invests in Nuclear Weapons

The Future Fund, was set up by the Australian Government from the sale of their remaining stake in  Telstra in 2006, The Fund was intended to help the government pay it's future superannuation obligations. Recently released records (obtained under FOI laws) show that the Fund has invested over $130 million in companies that design, produce and maintain nuclear weapons. This includes investment in companies that are building nuclear armed submarines for India, a non signatory to the Nuclear Non Proliferation Treaty.

The good news is that recently the Future Fund sold out of their holdings of companies manufacturing cluster bombs.

The Future Fund was set up using the proceeds from the sale of the Governement's holding of Telstra. It is our money. So where else is 'our money' (read YOUR money) invested. A two minute search shows that investors in one of the largest and most well known super funds in Queensland invests in uranium mining. The same fund has investments in Exxon Mobil and BP.

As ever, if you are comfortable with these types of investments, then it is business as usual. However, if you are not, and do not wish to support them, or wish to actively activate against them, you can.

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Nuclear Power. When Chinese Proverbs go bad!!!

I must say that I am partial to a good Chinese Proverb. But recent events have led me to be believe that they are, in fact, fallible.

The Proverb in mind is "The rose has thorns only for those who would gather it".

To me this would mean that if you left it alone, you don't get pricked. However, I think the photo above shows a rose that has thorns for everyone, whether we 'pick' it, or not.

I have the utmost sympathy for the people of Japan right now. Sincerely. And I would not want to be seen as being insensitive, but within days of the tragic events, we had people repeating that if we want to reduce our carbon emissions in Australia, the only reasonable option is nuclear power, and that to not use it, is in fact hypocritical.

Earlier today, a major Australian newspaper reported that fallout had reached Europe, and particularly Russia. How's that for irony. Further, radiation has been detected in food in Japan, and certain items have been banned from being imported into the USA. That is a lot of people being stuck by thorns they did not grasp.

I am concerned by the prospect of nuclear power being introduced into Australia. I don't believe that it is safe. It produces less carbon outputs than burning coal, but at what potential cost. I want to advocate against nuclear power, and support other renewables, and I choose to help others to do the same. You can march in the streets, write a letter to your member of parliament, or even invest your superannuation so that you don't support something that you don't want to.

As a final point, before starting this entry I quickly searched the Internet, under Japanese Nuclear Disaster. I read a paragraph or two on one of the articles about how the disaster has been classified as the worst since Chernobyl. Two people have died. It was then that I realised that there had been no mention of the earthquake, and I read the date of the article and saw that it was from 1999, and the disaster wasn't Fukushima, but Tokaimura, in 1999. The cause of that disaster was classified by the IAEA as human error and serious breach of safety protocol.

I don't want to grasp the 'rose' of nuclear power, and I don't want to be stung sitting idly by either.

Giving the Government a helping hand

Governments of the world continue to grapple with action and solutions for addressing climate change and the environment. Whatever solutions they finally agree on will have an impact on the profitability of companies all over the world. Those companies that are helping to reduce carbon will receive benefits, both financial (competitive advantage, efficiency gains), and social (reputational benefits and employee loyalty).

Responsible investment gives you the chance to do what governments of the world have not or will not. RI is a way to ensure that your money is directed towards those companies that are making a positive impact on the environment, and away from those companies that cause harm. You can directly encourage good corporate behaviour by directing your investments and super into companies whose practices you support.

The most common reasons why people become responsible investors are:

• To generate positive returns while making a difference.
• To direct their money to companies making a positive difference while avoiding those that cause harm
• To influence corporate behaviours, and push for greater accountability on issues like sustainability and governance.
• To take their activism to another level.

There are RI solutions for every risk profile, time frame and stage of life. You can make a difference and help to contribute to causes and issues that you believe in. Or you can wait for the Governments of the world to act. We are having enough problems with even deciding on one.

Demand for Responsible Investment is increasing

The Global Financial Crisis has made more people aware of the importance of considering good corporate ethics, governance and environmental issues when examining the future worth of any investment.

Once upon a time responsible investment (RI) was considered a niche market. Today responsible investors come from all walks of life and the issues that motivate them are universal.

• They may have an interest in social issues, be a member of community, environmental, political or human rights groups.
• They could have a science background and be passionate about new energy technologies as a way of solving the problem of climate change.
• They may belong to a faith based or other spiritual organisation, or they might want to be close to nature and might just want to ensure its' preservation.

RI appeals to people from all age groups and all social backgrounds.

The most common reasons why people decide to become responsible investors are:

• To generate competitive returns whilst making a difference to the environment or society.
  
• To ensure your money is directed towards companies making a positive difference to the environment and the impact of climate change whilst avoiding those that cause harm.
  
• As a way to influence corporate behaviour and push for greater accountability on issues like employment and trade conditions, environmental sustainability and good corporate governance.
  
• To take your social or consumer activism to the next level.
  

As far as the GFC is concerned, adopting an RI strategy is an excellent way to facilitate improvements in corporate responsibility.

In summary then, the way you invest inside and outside of super can help you make competitive returns, as well as having a positive impact on the environment, socisal issues, and corporate behaviour.

That only leaves one question; What is YOUR money up to?