Al Gore launches climate change asset manager

Former U.S. Vice President and Financier David Brad said they would “head-on” change traditional investment models by prioritizing climate change efforts over short-term economic benefits. We have established a new asset management company.

Just Climate, launched Wednesday, mandates investment in solutions that help limit global temperature rise to 1.5 ° C, is an Irish sovereign wealth fund and a foundation related to IKEA, a flat-pack retailer. We have already won the support of Microsoft.

Brad, a former head of Goldman Sachs Asset Management, said new investors will focus primarily on the private market in the energy, transportation, construction, agriculture and other industries.

As the investment industry is under increasing pressure to play a greater role in the transition to a low-carbon economy, the sector will use its shareholder power to fund climate solutions and crack down on fossil fuel producers. Critics argue that it’s not enough to do it. ..

Blood, who Configuration Generational investment management of sustainable asset management companies Goa Almost 20 years ago, capital markets said they needed to change the way they value their investments by focusing more on impact.

“By not prioritizing impact, we are not moving fast enough. [to tackle climate change]”A normal business cannot cut emissions in half over the next nine years,” he said.

Brad isn’t attracted to the size of the first fund, but his generation partners donate about 3% of his total assets, and his just-climate is “as big as a generation months or years ahead.” He said he wanted that. Generation has approximately $ 36 billion in assets under management.

Traditional investment models initially focus on financial indicators, but Just Climate instead begins with the potential impact of investment in tackling global warming. “It drives capital allocation,” he said, adding that the company is a for-profit business and that the new model will work within the traditional risk and return framework.

He had fast-growing climate solutions in many sectors, but investors often ignored them. Because they are often capital-intensive, unproven on a large scale, and take too long to be viable in difficult areas or commercially.

“There are certainly capital gaps, but the most important are the impact gaps. Currently, when we see the earliest opportunity to decarbonize the economy, capital is not flowing into them.”

While Brad chairs a new investor Sean Kingsbury, Former UK Green Investment Bank Chief Executive Officer will assume the role of Chief Investment Officer. Just Climate could “play an important role in funding the heavy parts of typical climate change assets,” Kingsbury said.

Gore recently warned that the entire financial system is needed Reformed If global warming is mitigated, he will chair the climate impact advisory group of the new asset manager.

“As a sector, we need to seriously rethink how capital is allocated in order to make real progress towards our Net Zero commitment,” he said.

Microsoft’s Climate Innovation Fund, Irish Strategic Investment Fund, Imas Foundation, part of IKEA’s Flatpack Furniture Empire, and Harvard Management Company, the organization that oversees the Harvard University Fund, are among the founding clients of Asset Manager. is.

Lucas Joppa, Microsoft’s Chief Environmental Officer, said:

Asset managers want to make their first investment by the end of the year, Brad said. Generation’s partner is the owner of Just Climate, but Just Climate was founded as a separate company from Generation.

Al Gore launches climate change asset manager Source link Al Gore launches climate change asset manager

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