Sign a joint letter to your asset manager asking them to create fossil fuel-free ethical investments
Archbishop Emeritus Desmond Tutu has said that:
‘People of conscience need to break their ties with corporations financing the injustice of climate change.’
Are you a person of conscience? Break your ties with corporations financing the injustice of climate change now.
The threshold for sending this letter to each respective asset manager will be 88 signatories, 88 being the current age of the Archbishop.
You can read the full context for this campaign here.
Dear CEO/CIO/board chair (names of individuals will be used when these letters are sent)
Creating a fossil fuel-free investment fund is your urgent responsibility
We write to you as asset owners and clients, with the support of thousands of other South Africans who have also called for the creation of no-carbon funds.
It is now widely acknowledged that climate breakdown is a matter of existential risk for the world at large, and for Africa in particular. The Covid-19 pandemic has further demonstrated the abundant peril of neglecting scientific advice on long-term global risks and ecological breakdown:
- Southern Africa has been identified by the IPCC as a climate change ‘hotspot’, warming at TWICE the global average. South Africa’s current national emissions trajectory is consistent with taking the world to 3°C–4°C of warming by 2100—and up to 8°C warming for large parts of South Africa, a level that stands every chance of destroying our economy and society.
- The UN Environment Programme recently released research showing global emissions must fall by 7.6% a year over the next decade to avoid catastrophic climate breakdown, emphasising the UN Intergovernmental Panel on Climate Change (IPCC)’s 2018 conservative assessment that emissions must be halved by 2030 and eliminated by 2050.
- South Africa is in the grips of a deadly drought, almost certainly worsened by climate change, while the health effects of air pollution from coal, and the corruption and poor governance associated with fossil fuel extractive industry bring massive additional social and economic costs. Climate change is estimated to have cut 10% off national GDP (from a 1990 baseline).
- The social and health effects of coal burning and mining worsen our nation’s inequality and create ‘sacrificial zones’ within South Africa.
Despite the global consensus of citizens represented by governments ratifying the Paris climate treaty that global warming should be limited to 1.5 degrees, fossil fuel companies, enabled by asset managers and debt issuers, have mostly not reduced fossil fuel emissions but have instead accelerated plans for extraction while lobbying against vital regulation. Since climate change has been clearly identified as a leading global human rights issue, these business plans amount to mass human rights abuses which must be averted and in which we do not want to be complicit.
In a climate emergency, it falls to every individual and institution to take all possible steps within their power to avert this crisis. We no longer, for example, wish to be invested in Sasol, a company that has missed all its own emissions reductions targets, that has no plan for urgent decarbonisation in alignment with science-based targets, and which repeatedly seeks to avoid vital regulation of carbon dioxide and other emissions.
We believe that there are now abundant indications that your current investment and management strategies are damaging portfolio value:
- By failing to more actively seek climate-resilient investment opportunities
- By ignoring potential stranded carbon-intensive asset risk
- By ignoring the destruction of value in asset classes affected by climate change, e.g., agriculture and insurance
- By allowing the poor governance that is all too often associated with companies that neglect environmental responsibilities to go largely unchallenged
- By ignoring the mounting evidence that rigorous ESG screening can improve returns
We as your clients instruct you to make active engagement and leadership on climate issues with asset owners and clients an immediate priority, specifically:
- That you create and capitalise a strong ESG fund with hard screening for the most carbon-intensive companies (those listed on the Carbon Underground 200), to give your clients the option of partial or complete divestment from these companies.
- That you henceforth provide annual assessments of 1) stranded asset risk over various timeframes for carbon-intensive assets across your portfolios and 2) the carbon intensity of your funds/portfolios
- That you make alignment with science-based carbon dioxide emission reduction targets by carbon-intensive investee companies the pillar of your ongoing shareholder engagement.
- That you work with other asset managers to make an insistence on science-based national emissions reductions a pillar of public advocacy and engagement with government.
We believe these actions to be in the best long-term interests of both us investors, your clients, and society, the broader environment within which our assets operate to create value. We request a meeting with you within six weeks of receipt of this letter to discuss their urgent implementation.
[88 clients of each of the major SA asset managers]
[The threshold for sending the letter to each respective asset manager will be 88 signatories, 88 being the age of Archbishop Emeritus Desmond Tutu, who has declared that, ‘People of conscience need to break their ties with corporations financing the injustice of climate change.’]