D 2021-07-30T23:14:44.005
L ClimateChange
N text/x-markdown
P dcc8fd52ec322eb514bea6d038a41829aff9d573b19f8527dd0b851c1d4ced0f
U zie
W 3060
Generally speaking Climate Change(CC) is already priced into the market. It's unknown if it's priced in enough. Also Blackrock and Vanguard are already pressuring companies to adopt to climate change with limited success.
Personally, I'm of the perspective that if one really wants to fix climate change from an investor perspective: Work to change the bad behaviour, the good behaviour is already rewarded. Concrete Example: You would do better owning the "bad" companies directly(Oil & Gas for example) and then vote on every climate change initiative, and show up @ the shareholders meetings asking about their climate change plans and generally making your voice heard. You can do all of this owning just 1 share of the company.
I'm too lazy/have my attention directed elsewhere, so I don't do that. I just own the whole market and let it sort itself out.
The Atlantic recently [reported](https://www.theatlantic.com/newsletters/archive/2021/06/climate-focused-hedge-funds-new-index-fund-engine-no-1/619264/) that the hedge fund [Engine No 1](https://engine1.com) is starting a new S&P 500 index fund with an ER of 0.05%.
Unlike most S&P 500 index funds, it's planning to exercise shareholder power to move companies in a more ESG direction, like it did recently [with Exxon](https://www.nasdaq.com/articles/little-engine-no.-1-beat-exxon-with-just-%2412.5-mln-sources-2021-06-29). [SEC prospects](https://www.sec.gov/Archives/edgar/data/1831313/000110465921083778/tm2119155-10_497.htm) for VOTE.
Proof of my claim(s) about CC being included already, also see [this](https://rationalreminder.ca/podcast/156) podcast episode:
* ['Sustainable investing in equilibrium'](https://www.sciencedirect.com/science/article/abs/pii/S0304405X20303512)
* ['Market Expectations About Climate Change'](https://www.nber.org/papers/w25554)
* ['An Inconvenient Cost to the Effects of Climate Change On Municipal Bonds'](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3167379)
* ['Disaster on the Horizon: The Price Effect of Sea Level Rise'](https://www.sciencedirect.com/science/article/abs/pii/S0304405X19300807)
* ['Science and the Stock Market - Investors’ Recognition of Unburnable Carbon'](https://www.sciencedirect.com/science/article/pii/S0140988315002546)
* ['Environmental Externalities and Cost of Capital']( https://www.jstor.org/stable/24550583)
* ['Carbon Tail Risk'](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3204420)
* ['Climate Regulatory Risks and Corporate Bonds'](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3563271)
* ['Greenhouse Gas Emissions and Expected Returns'](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3714874)
* [Vanguard voting](https://about.vanguard.com/investment-stewardship/how-our-funds-voted/)
* [Blackrock voting](https://www.blackrock.com/corporate/about-us/investment-stewardship), specifically see the bottom of page 9 of this [PDF](https://www.blackrock.com/corporate/literature/fact-sheet/blk-responsible-investment-engprinciples-global.pdf)
Z 2aa03b716c7390a9afb3f47841d79621