COVID-19 has shown us that investing in polluting companies is not only morally wrong, but also unlikely to be good financial sense

by | Apr 28, 2020 | Blog

Here at The Path, we have always believed in the value of positive investments and the power they hold when changing the world for the better. While the terrible impact of COVID-19 on our communities is unequivocal, this pandemic has allowed a glimpse into what the world could look like if we took serious steps towards climate change

The complete lockdown of countries has seen pollution reduce to a point where the canals of Venice are clear, coyotes that are usually timid of traffic have been spotted on San Francisco’s Golden Gate Bridge and the Himalayas can be seen from some regions in India for the first time in 30 years.

This, along with the tightening impact on the economy, has prompted many to re-assess whether their money is going to companies with the best environmental intentions.

On Earth Day earlier this month, our founder predicted that the onset of this virus will hasten a move towards impact investment. David Macdonald said:

There is no soft landing in sight for consumers when it comes to the share price of polluting firms like airlines and oil companies.

He made this forecast based on how The Path has seen an incremental increase in the number of people looking to transfer their pensions and investments to socially responsible organisations, since the beginning of this crisis. And for good reason too – as The Path has also found that its own investments in these companies and funds are holding up better than the market as a whole due to their strong environmental values.

David also took this opportunity to inform consumers that putting off the moving of these investments until the end of this crisis would incur some potential risks. He warned:

You can either hope that investments recover, or you can realise that your money is contributing towards a dying industry – that the world is changing and that, by being proactive now, you can be part of building something better.

Finally, when referring to recent news around Virgin Atlantic seeking a bail-out from the public, David remarked that “it was a market disrupter – it offered great customer service, was ground-breaking in its approach and [he’s] sure there are plenty of staff members worried about its future. However, there’s no getting away from the fact that airplanes are huge polluters and as a result, there is less public support for them to re-emerge once this is all over.

Ultimately, those who are mindful of where they invest – avoiding companies that rely on non-renewable fossil fuels – have a long-term picture of the world they want to live in, and aren’t afraid to put their money where their mouth is when making it a reality.

During this time of global crisis, our team at The Path understands how individuals are taking the opportunity to re-examine what’s important to them – the family and friends they hold dear, and the environment they live in.

We’re here to protect both of those things, and to help you do the same. Click here to have a chat with our expert financial advisers.

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