The Accidental Investor
Maybe you reduce, reuse and recycle. Maybe you’re into using renewables, buying local, and drinking fair-trade. Maybe you’re opting out of disposable products in favour of more sustainable design. Or maybe you’re just living your life, your way, the best you can. Whatever the case, one thing’s for sure, you’re aware of how you’re spending your take-home income, you’re spending it the way you want to. But are you even remotely aware of how your pension contribution is being spent on your behalf?
Did you know that over 55% of your mandatory pension contribution is invested in high-risk, high-carbon assets with less than 2% being invested in low-carbon assets? So while you may be intentionally spending your money according to your own values, you may be accidentally investing your money in things you are completely opposed to, like dangerous high-carbon industries. This sort of investment not only jeopardises the environment but equally worringly, places your own personal finances under signficant threat.
By becoming one of The Vital Few you can take back control of your future and start to invest with intent.
The sheer volume of money tied up in pension funds globally is staggering. Upwards of $30 trillion, it is the single largest consolidation of money found anywhere in the world. Dwarfing the wealthiest individuals, the most successful companies and the most powerful governments, global pension fund money is at the top of the wealth chain. So when it comes to solving the greatest challenge of our generation… reducing our reliance on fossil fuels to safeguard our environmental and economic future… logic follows that the pension pot of wealth be called into action. Remember... it’s your money. Pension fund managers are simply custodians acting on your behalf.
Left to their own devices, pension funds will continue gambling with your financial security and keep failing to give you what you deserve: transparency and honesty about how much of your money they are really investing in dangerous high-carbon assets; and how they are managing serious climate risk on your behalf to protect your wealth. Climate change is the most high-risk, high-certainty event that will ever impact global investment. Pension funds worldwide are largely exposed and ill-prepared for the predicted rapid re-pricing of carbon which will guarantee things are no longer worth what they once were. The casualties of their short-sightedness will be your financial nest egg for the future.
By becoming one of The Vital Few you can have your say on how that powerful pot of money is invested.