“The great tragedy of the climate crisis is that seven and a half billion people must pay the price – so that a couple of dozen polluting interests can continue to make record profits.”

Michael Mann, leading climate scientist.

MARKET COMMENTARY

A recent article in the Guardian reported that 20 firms globally are behind a staggering third of all carbon emissions.

According to the research, quoted in the article, household names such as Chevron, Exxon, BP and Shell and state-owned companies including Saudi Aramco and Gazprom, together make up a group of 20 firms that have contributed 35% of all energy-related carbon dioxide and methane worldwide This totals 480bn tonnes of carbon dioxide equivalent (GtCO2e) since 1965.

In response, some of the firms argued that they were not directly responsible for how the oil, gas or coal they extracted was used by consumers. We see this as a weak argument, and while the 20 firms pointed out efforts they were making to invest in renewable or low carbon energy sources, we have chosen to avoid fossil fuels and thermal coal across our Responsible Investment Fund and CareSaver KiwiSaver funds completely. As such, we do not hold any of the top 20 carbon emitters in the Funds, or indeed any intensive carbon emitter.

After a volatile start to the month, global equity markets rebounded and the US markets have broken back to fresh all-time highs