We’re publishing daily interviews, conducted by Greenhouse PR, with a different ethical investment pioneer each day this National Ethical Investment Week (NEIW).
Thursday’s pioneer is Clare Brook of WHEB Asset Management, who has been a leading figure in the ethical and environmental investment sector for 20 years.
She follows UKSIF chief executive Simon Howard, Sebastian Parsons of Stockwood Community Benefit Society, Paul Ellis of Ecology Building Society, James Vaccaro of Triodos Bank, Claudia Quiroz of Quilter Cheviot and John Ditchfield of Barchester Green.
Tell us, in 20 words or fewer, about WHEB. What’s your mission?
WHEB aims to invest in companies that are providing solutions to some of the most serious sustainability challenges we face.
What motivates you to do what you do?
All the technology exists to solve our most serious problems – climate change, hunger, water shortages, pollution. It’s just a question of redirecting capitalism so that the economy works for people, planet and future generations. I think I’m playing a very small part in effecting that shift.
What are the biggest challenges in building momentum for ethical finance?
Making people realise that investing in line with your values is not flaky or likely to lead to bad performance, but actually the most sensible thing you can do in the long run.
What trends or developments are you most excited about in sustainable and ethical investment?
The rise of focused, thematic funds, such as ours. For a while it seemed as if the direction of travel was for sustainable and ethical investment to become increasingly mainstream, and the top 10 holdings of many funds looked exactly like non-ethical funds.
Thematic funds have a much more interesting range of holdings that are genuinely providing solutions to sustainability challenges.
What one thing could change the future of finance?
It’s obviously not something I’d wish, but a really catastrophic climate change related event – New York or London under water – would make policymakers wake up to the fact that we need to reduce greenhouse gas emissions dramatically and concertedly, not just by the subtle increments that are talked about at Copenhagen and Rio.
That would mean that the global economy would cease to be dominated by oil companies and other unsustainable industries and would instead be led by renewables and energy efficiency companies.
Where do you want to take WHEB next?
We want to continue to grow assets under management in the FP WHEB Sustainability Fund so that WHEB can become a large and even more influential business.
What can we, as individuals, do to make a difference?
Fight the good fight. Don’t give up, even if it sometimes seems futile.
If you were prime minister for a day, what would be the first thing you’d do?
Ban petrol-driven cars.
What’s the coolest project or product you’ve come across, and inspired you?
I still think the bicycle is the greatest invention ever! And I think Boris Bikes have been an excellent initiative for London.
Can you recommend a life- or game-changing book for our readers?
Capitalism: As If The World Matters by Jonathon Porritt.
What’s the best advice you’ve ever been given?
The best advice I heard was in a recording of a face to face interview with Bertrand Russell, the great philosopher. He was asked what his one message to humanity would be, and he said, “It’s a very simple one: love is good and hate is bad.” I try to remember that in the most complex of situations.
If you could encourage people to invest in one thing, what would it be and why?
Well of course I’d say the FP WHEB Sustainability Fund (although our head of compliance would say you’d have to speak to a financial adviser and not take my word for it!) To see why, have a look at www.whebam.com.
Can you leave us with who’d be your ethical investment pioneer?
Ben Goldsmith is my ethical investment pioneer. He’s only 32, but he’s already achieved a huge amount, notably co-founding WHEB, which is on course to be the leading sustainable finance firm in Europe and setting up the Environmental Funders Network.
He and his brother Zac are also trying to make the Conservative party see sense on environmental issues. He’s achieved all this in about a decade, so who knows what he might achieve in the next few.
Will Self-Driving Cars Be Better for the Environment?
Technologists, engineers, lawmakers, and the general public have been excitedly debating about the merits of self-driving cars for the past several years, as companies like Waymo and Uber race to get the first fully autonomous vehicles on the market. Largely, the concerns have been about safety and ethics; is a self-driving car really capable of eliminating the human errors responsible for the majority of vehicular accidents? And if so, who’s responsible for programming life-or-death decisions, and who’s held liable in the event of an accident?
But while these questions continue being debated, protecting people on an individual level, it’s worth posing a different question: how will self-driving cars impact the environment?
The Big Picture
The Department of Energy attempted to answer this question in clear terms, using scientific research and existing data sets to project the short-term and long-term environmental impact that self-driving vehicles could have. Its findings? The emergence of self-driving vehicles could essentially go either way; it could reduce energy consumption in transportation by as much as 90 percent, or increase it by more than 200 percent.
That’s a margin of error so wide it might as well be a total guess, but there are too many unknown variables to form a solid conclusion. There are many ways autonomous vehicles could influence our energy consumption and environmental impact, and they could go well or poorly, depending on how they’re adopted.
One of the big selling points of autonomous vehicles is their capacity to reduce the total number of vehicles—and human drivers—on the road. If you’re able to carpool to work in a self-driving vehicle, or rely on autonomous public transportation, you’ll spend far less time, money, and energy on your own car. The convenience and efficiency of autonomous vehicles would therefore reduce the total miles driven, and significantly reduce carbon emissions.
There’s a flip side to this argument, however. If autonomous vehicles are far more convenient and less expensive than previous means of travel, it could be an incentive for people to travel more frequently, or drive to more destinations they’d otherwise avoid. In this case, the total miles driven could actually increase with the rise of self-driving cars.
As an added consideration, the increase or decrease in drivers on the road could result in more or fewer vehicle collisions, respectively—especially in the early days of autonomous vehicle adoption, when so many human drivers are still on the road. Car accident injury cases, therefore, would become far more complicated, and the roads could be temporarily less safe.
Deadheading is a term used in trucking and ridesharing to refer to miles driven with an empty load. Assume for a moment that there’s a fleet of self-driving vehicles available to pick people up and carry them to their destinations. It’s a convenient service, but by necessity, these vehicles will spend at least some of their time driving without passengers, whether it’s spent waiting to pick someone up or en route to their location. The increase in miles from deadheading could nullify the potential benefits of people driving fewer total miles, or add to the damage done by their increased mileage.
Make and Model of Car
Much will also depend on the types of cars equipped to be self-driving. For example, Waymo recently launched a wave of self-driving hybrid minivans, capable of getting far better mileage than a gas-only vehicle. If the majority of self-driving cars are electric or hybrids, the environmental impact will be much lower than if they’re converted from existing vehicles. Good emissions ratings are also important here.
On the other hand, the increased demand for autonomous vehicles could put more pressure on factory production, and make older cars obsolete. In that case, the gas mileage savings could be counteracted by the increased environmental impact of factory production.
The Bottom Line
Right now, there are too many unanswered questions to make a confident determination whether self-driving vehicles will help or harm the environment. Will we start driving more, or less? How will they handle dead time? What kind of models are going to be on the road?
Engineers and the general public are in complete control of how this develops in the near future. Hopefully, we’ll be able to see all the safety benefits of having autonomous vehicles on the road, but without any of the extra environmental impact to deal with.
New Zealand to Switch to Fully Renewable Energy by 2035
New Zealand’s prime minister-elect Jacinda Ardern is already taking steps towards reducing the country’s carbon footprint. She signed a coalition deal with NZ First in October, aiming to generate 100% of the country’s energy from renewable sources by 2035.
New Zealand is already one of the greenest countries in the world, sourcing over 80% of its energy for its 4.7 million people from renewable resources like hydroelectric, geothermal and wind. The majority of its electricity comes from hydro-power, which generated 60% of the country’s energy in 2016. Last winter, renewable generation peaked at 93%.
Now, Ardern is taking on the challenge of eliminating New Zealand’s remaining use of fossil fuels. One of the biggest obstacles will be filling in the gap left by hydropower sources during dry conditions. When lake levels drop, the country relies on gas and coal to provide energy. Eliminating fossil fuels will require finding an alternative source to avoid spikes in energy costs during droughts.
Business NZ’s executive director John Carnegie told Bloomberg he believes Ardern needs to balance her goals with affordability, stating, “It’s completely appropriate to have a focus on reducing carbon emissions, but there needs to be an open and transparent public conversation about the policies and how they are delivered.”
The coalition deal outlined a few steps towards achieving this, including investing more in solar, which currently only provides 0.1% of the country’s energy. Ardern’s plans also include switching the electricity grid to renewable energy, investing more funds into rail transport, and switching all government vehicles to green fuel within a decade.
Zero net emissions by 2050
Beyond powering the country’s electricity grid with 100% green energy, Ardern also wants to reach zero net emissions by 2050. This ambitious goal is very much in line with her focus on climate change throughout the course of her campaign. Environmental issues were one of her top priorities from the start, which increased her appeal with young voters and helped her become one of the youngest world leaders at only 37.
Reaching zero net emissions would require overcoming challenging issues like eliminating fossil fuels in vehicles. Ardern hasn’t outlined a plan for reaching this goal, but has suggested creating an independent commission to aid in the transition to a lower carbon economy.
She also set a goal of doubling the number of trees the country plants per year to 100 million, a goal she says is “absolutely achievable” using land that is marginal for farming animals.
Greenpeace New Zealand climate and energy campaigner Amanda Larsson believes that phasing out fossil fuels should be a priority for the new prime minister. She says that in order to reach zero net emissions, Ardern “must prioritize closing down coal, putting a moratorium on new fossil fuel plants, building more wind infrastructure, and opening the playing field for household and community solar.”
A worldwide shift to renewable energy
Addressing climate change is becoming more of a priority around the world and many governments are assessing how they can reduce their reliance on fossil fuels and switch to environmentally-friendly energy sources. Sustainable energy is becoming an increasingly profitable industry, giving companies more of an incentive to invest.
Ardern isn’t alone in her climate concerns, as other prominent world leaders like Justin Trudeau and Emmanuel Macron have made renewable energy a focus of their campaigns. She isn’t the first to set ambitious goals, either. Sweden and Norway share New Zealand’s goal of net zero emissions by 2045 and 2030, respectively.
Scotland already sources more than half of its electricity from renewable sources and aims to fully transition by 2020, while France announced plans in September to stop fossil fuel production by 2040. This would make it the first country to do so, and the first to end the sale of gasoline and diesel vehicles.
Many parts of the world still rely heavily on coal, but if these countries are successful in phasing out fossil fuels and transitioning to renewable resources, it could serve as a turning point. As other world leaders see that switching to sustainable energy is possible – and profitable – it could be the start of a worldwide shift towards environmentally-friendly energy.
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