Sebastian Mang, Greenpeace EU climate policy adviser
François Millet, Head of ESG, Innovation & Strategy
The ongoing climate emergency wreaked havoc in 2019. Cyclone Idai claimed thousands of lives across south-eastern Africa. France recorded its highest ever temperature of 45.9°C, while Venice saw its streets and squares ravaged by floods.1
Meanwhile, the devastating bush fires in Australia rage on, with 70-metre-high flames reported (that’s higher than the Sydney Opera House). So far, the fires have claimed 14.8 million acres of bush, forest and parks.2 To put that into perspective, that’s twice the surface area of Belgium.
While some may have simply been unfortunate “Acts of God”, the growing frequency and intensity of such events may well be the by-product of climate change.
It’s a sobering picture, but we’re encouraged by the real shift in mindset we saw in 2019. Extinction Rebellion protests, Beyond Meat’s IPO, the so-called ‘Greta effect’ – momentum is building and, as last year’s inflows suggest, investors have shown they care too.
This is great news, because finance has the power to change the world. Green bonds in particular could help fuel the transition to a low-carbon future, given their proceeds are earmarked solely for the financing of eco-friendly projects and assets.
At Lyxor, we believe the best way of investing in green bonds is to choose a passive fund. Read on to find out why.
1The Guardian, 19 Dec 2019: https://www.theguardian.com/commentisfree/2019/dec/20/2019-has-been-a-year-of-climate-disaster-yet-still-our-leaders-procrastinate 2BBC News, 3 Jan 2020: https://www.bbc.com/news/world-australia-50951043