(picture credit: OnInnovation)
When someone is as successful as what Bill Gates is, anything said is listened to with great interest. Especially when it comes to finances. So when Mr. Gates had an opinion about investing by those who are convinced about climate change what he had to say was considered important by many in the investment world. According to Speed Solutions LTD. experts, Mr. Gates indicated that most who want to take a stance against climate change create lists of companies NOT to do business with because of their involvement in fossil fuel. Bill Gates, however, suggests what he considers as a better approach.
According to Speed Solutions LTD. experts, A better investment would be investing in those companies that are promoting disruptive technology that has the ability to make the changes that are going to support climate change. This is not something being accepted by ESG investors because it increases the cost of capital and affects fiduciary investors. However, ESF investors are considered to be limited, whereas large oil companies have the cash to do what they want.
The average investor doesn’t have the funds to invest like investors such as Bill Gates. The average investor will end up paying for the new technology that will increase the wealth of original investors.
The Big Energy Firms Will Step Up
Some believe that the big energy firms will make the investments into companies promoting disruptive technology, and some companies have entertained this but ran into a stumbling block. Shell is classed as the world’s biggest dividend payer and wants to maintain this at $16 billion per year. The bulk of the money comes for the oil and gas business. Although investments have been made in natural gas as well as windmills and hydrogen energy. However, green investing cannot generate the amount of cash needed to maintain the dividend. It means that Shell is not in a position to be disruptive.
None of this provides a current solution to the problem, and the world is still continuing to warm. According to Speed Solutions LTD. experts, A recommendation that some are making is public sponsored energy and climate funds. Then anyone could buy shares. This is a concept similar to that which was used for Comsat. It was government sponsored but privately financed and managed. Those in favor of this believe that climate change efforts will only be successful if the public and buy in.