New social media platform targets climate risk
A social media platform aimed at raising awareness about climate risk and 'short-termism' in the global financial system was launched over the weekend in New York.
'The Vital Few' is the brainchild of the Australian industry group the Asset Owners Disclosure Project (AODP), which describes itself as "an independent global not-for-profit organisation whose objective is to protect members' retirement savings from the risks posed by climate change".
AODP chair John Hewson said the global pension system is failing its members, but it may only take "a vital few to steer it back on course".
"Asset owners like the pension and superannuation funds appear to have learnt nothing from the mismanagement of sub-prime mortgages which triggered the global financial crisis," he said.
'The Vital Few' aims to create an online community where a few pension members can lead real change in the disclosure of pension fund assets, Hewson said.
John Connor, chief executive of the Climate Institute and a director of the AODP, said that while around $60 trillion is being managed for the long term for the world's retirement, Deutsche Bank calculated that less than 2 per cent is invested in low carbon assets.
"Shifting even a small percentage of these funds can make a significant impact in tackling climate change and, as proper long-term risk management, requires no legislative change - but such a shift would enhance globally emerging laws and policies that price and limit carbon pollution and encourage investment in clean energy," said Connor.
Sharan Burrow, general secretary of the International Trade Union Coalition and director of the AODP, said the social media platform was a "vital tool" and "part of a profound change in the operation of global capital".
"The ownership of assets that shape our economies is no longer in the hands of the wealthy or big governments but in the pension accounts of ordinary citizens," she said.
"These citizen investors can now collaborate to help make the kind of sustainable economy we need for a more prosperous future," Burrow said.
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