Green Tip: Wall Street Starts Going Green

The Palisadian-Post has partnered with locally founded environmental nonprofit Resilient Palisades to deliver a weekly “green tip” to our readers.

Last month, our country witnessed David winning a few monumental battles against Goliath—two in the U.S. and one in the Netherlands—all with global consequences.

In the U.S., a tiny hedge fund succeeded in getting two climate-activist directors appointed to the board of our nation’s largest oil company, Exxon Mobil. The hedge fund that led this fight, Engine No. 1, had the support of some big pension funds in California and New York.

At the same time, shareholders in our nation’s second largest oil company, Chevron, voted for a proposal to reduce emissions from the fuel the company makes and sells to drivers and other customers.

Meanwhile, a court in the Netherlands ruled Royal Dutch Shell must reduce its emissions of planet-warming gases by 45% by the end of 2030 compared with 2019 (applicable only in Shell’s home country).

In 2020, less than 2% of U.S. electricity came from the sun and another 7% from the wind. A recent United Nations report estimated that global climate warming emissions need to fall six times faster than they have been if we are going to cap our global warming at 2.7 degrees Fahrenheit (the goal is to drop 7.6% annually over the next decade) according to a report in National Geographic.

In the twelfth hour of a gasping planet, a trend is finally taking shape on Wall Street and in global markets to invest in clean, renewable energies.

The U.S. is woefully behind in research and development of green energy. Not only will this hinder our ability to combat the climate crisis, it also harms us economically. Over the last decade, European oil companies have been investing in clean energy projects, and China is now the world’s largest leader in green energy, according to a report in Foreign Affairs.

In a fight against time to change our climate trajectory, shareholders are in a very powerful position to turn the tide. If you own shares directly in energy companies or businesses that are major sources of emissions (e.g., aviation, automotive), or if you own mutual funds that own shares in these businesses, it’s time to make your voice heard.

Reach out to your fund managers or the businesses themselves today, and express your support for reducing emissions and investments in clean, renewable energy. The planet and your wallet will thank you.