Prince Charles has criticised the pensions industry for focusing on what he called ‘quarterly capitalism’ rather than sustainability, and for failing to tackle long-term challenges such as climate change.
Speaking in a video recorded for the National Association of Pension Funds (NAPF), the Prince said that the industry plays a crucial role in the economic system. However, he argued that the focus on short-term profits was making the system “increasingly unfit for purpose.”
We are all facing a “perfect storm”, he said, from “the combination of pollution and over-consumption of finite natural resources, the very real and accumulating risk of catastrophic climate change, unprecedented levels of financial indebtedness and a population of 7 billion that is rising fast.”
The Prince went on to say that the pensions industry “has a duty” to manage these environmental and economic risks. To do so would also better enable the industry to provide long-term returns.
“Is there not a case for ensuring your portfolios are sustainable in the long term?”, he asked.
“Could you not do so by incorporating sustainability into your long-term strategy rather than having it sit in a subordinate silo.”
The Prince concluded by telling delegates, “It falls to you, I’m afraid, to help shape a system designed for the 21st and not the 19th century.”
Responding to his comments, Catherine Howarth, chief executive of the charity ShareAction, said, “Pension funds have enormous financial clout and could invest in the kind of forward thinking projects that would deliver secure energy, jobs growth, and protection of the environment for future generations.
“Now isn’t the time for complacency. Our pension funds have only a short time in which to act.”
On Sunday, UN secretary-general Ban Ki-moon said pension funds, and other institutional investors, needed to get on board with the sustainability message.
“A transition to a green economy will be virtually impossible if this enormous financial asset class does not itself transition towards low-carbon assets,” he added.
Like our Facebook Page
7 Benefits of Purchasing Sustainable Housing
Our Top Five Sustainable Home Renovations For 2023
6 Ways Eco-Friendly Photographers Can Take Beautiful Natural Pictures
Emerging Research In Seagrass Restoration: What Does The Future Hold?
Sustainable Bites: How To Make Your Diet Eco-Friendly
Coffee Farms & Cloud Forests: Colombia’s New Eco Initiatives
Electric Cars: Are They Worth The Switch?
Maximizing the Efficiency of Deliveries: Strategies for Sustainable Businesses
The Rise of Sustainable Cloud Computing
Navigating Towards A Greener Future: Sustainable Practices In Maritime
The Future of Sustainability In The Logistics Industry
Can Eco-Friendly Businesses Embrace VPNs to Bolster Cybersecurity?
Eight Different Eco-Friendly Developments in the Food Industry
UK Lags EU in Installing Heat Pumps to Slow Climate Change
5 Key Areas to Look at When It Comes to Business Sustainability
Addressing Leadership Challenges in Green Entrepreneurship
Holding Eco-Friendly Coins is Greener and More Profitable
5 Reasons That Diamonds Can Be Excellent Green Investments
Eco-Friendly Airlines Use Weather Models to Make Safer Flights
Why Should We Invest in Eco-Friendly Homes?
- Features3 months ago
What is the Eco-Friendliest Option to Wash Your Dishes?
- Environment7 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment11 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?
- Business10 months ago
The Pulp & Paper Industry is Reaching its Sustainability Goals