Investing in fossil fuels is unethical

This is part 3 of a 3 part article 'Why is engagement with oil giants wrong?'

 Many institutions promote ethical investment policies based on Environmental, Social, and Governance (ESG) factors. The aim is identify and invest in businesses what govern fairly and reduce the negative social and environmental impact of their business.

The Church of Ireland has a ESG policy and it does not invest in companies where more than 10% of profits are obtained from strategic military sales, the manufacture of tobacco products, or from coal mining activities (highest carbon emissions). The Church of Ireland Representative Church Body (RCB) ESG policy states,
“RCB is committed to having a strong ‘ethical’ as well as a strong financial ‘balance sheet’.”
It is good to see that the Church of Ireland aims to be an ethical investor.

Burning fossil fuels causes two major problems: air pollution and climate change.

Air Pollution

Already air pollution from burning fossil fuels is causing major consequences to human health. The UN World Health Organisation (WHO) estimates that 7 million people worldwide suffer premature death due to air pollution each year, with a further 400,000 killed as a result of climate change impacts (Climate vulnerability monitor 2012, Dara). This compares to tobacco which kills 6 million people each year (WHO), and conflict worldwide resulted in 180,000 fatalities in 2014 (International Institute for Strategic Studies).

It is clear that climate change impacts human health much more than arms sales.

The Head of the World Health Organization, Margaret Chan said,
“Air pollution is one of the most important health risk factors globally, comparable to tobacco smoking”. 
It is no surprise that the Lancet medical journal said that reducing emissions that cause climate change is 
“the greatest global health opportunity of the 21st century”.
The Church of Ireland’s decision not to invest in coal is welcomed. However, air pollution from transport, oil & gas powered stations, domestic & commercial heating, construction and industry together contribute more pollution than coal. The Department for Environment Food and Rural Affairs states that historically the main source of air pollution was coal, but
“These days, the major threat to clean air is now posed by traffic emissions.”
It is not burning coal that is the problem, it is burning fossil fuels.

Climate change

The risk of climate change from from burning fossil fuels is well established. In fact, it is increasingly recognised that climate change is the greatest threat we face. As UN Secretary General, Ban-Ki Moon said,
“Climate change is, simply, the greatest collective challenge we face as a human family.”
If carbon pollution continues unabated, global temperatures could rise to +3C or +4C by 2100. This might trigger run-away global warming, creating massive droughts, famines, sea level rise flooding counties and cities and even to ecological collapse.

Is it ethical to invest in the fossil fuel industry that through air pollution and climate change is heading to disaster? Millions of lives could be saved by divesting from fossil fuels and investing in clean, renewable energy sources.

Rather than investing in fossil fuels and using engagement to try to influence these companies, ethical investors would be better to divest and invest in clean energy technologies. Engagement simply gives the companies an excuse to make very small investments in ‘green technologies’ whilst continuing to invest heavily in new mining and drilling operations.

I hope that ethical investors, like the Church of Ireland, will act quickly to invest in a clean, pollution free, ethical, balance sheet.

Comments

Post a Comment

Popular posts from this blog

Care for Creation - new growth in Ireland

Image
It is been quite a year for Care for Creation in Irish Churches, perhaps it could even be called a season of new growth. And it all came about because of two teenage girls speaking passionately. Tori and Isobella from Mullingar Parish in county Meath spoke for a few minutes at the Irish Churches Creation Care conference and captured the hearts of the audience and explained what creation care is all about.  You can see the moment below, Their project Lighten Our Darkness by Numbers is a youth-led response to climate change. They are educating church goers, engaging communities, building bridges to businesses, and enhancing biodiversity in church graveyards.   This short talk from the girls had a deep impact on the Archbishop of Armagh, and he spoke about it at his presidential address in General Synod.  Archbishop John McDowell said, We need to do what that group of young people from Westmeath are doing. That is, to work on ways of inspiring and equipping parishes t...
Read more

Speech to General Synod 2022

Image
Photo from Stephen Spillane The support from the RCB to parishes, dioceses and cathedrals during the Covid-19 emergency was most welcome. It helped us worship in difficult at times. May I suggest we use this model of support to respond to other emergencies too. The World Health Organisation said in October last year that, “the single biggest health threat facing humanity” is Climate change. We must take decisive action. I want to thank the RCB for leading the way by divesting and supporting the Creation Care Conference in April.  But it is also up to every diocese, every parish, and every one of us to take action. We need a grassroots movement to transform our churches and our lives for a sustainable future. And church leaders, you might need to sow some fresh seed to help the grass roots grow. I think the RCB can support this movement by responding to the Climate Emergency, just as it did with Covid. For example, How many of you clergy have lived in a cold and draf...
Read more

The Presbyterian Church in Ireland to vote on fossil fuel divestment

Image
  Photo by  Lukasz Szmigiel  on  Unsplash There have been a number of very positive statements from the PCI in the last few months on climate change, and today there is an opportunity for action to stop funding fossil fuels. The church's decision to support The Climate Sundays initiative is really positive. The moderator is encouraging congregations across Ireland to set aside one Sunday in October as `Climate Sunday' to focus on God's creation and humanity's responsibility to be good stewards of it. Rev Dr David Bruce also produced a Climate Conversation video to outline briefly some of the theological reasons why Christians should take climate change seriously and care for creation. This is all very welcome. Another key moment will be today, Tuesday 5th October, when the General Assembly will vote on a motion to divest from fossil fuels. It aims to fully divest from fossil fuel production companies that it holds - that's £5m in BP, Shell and Total - and to engag...
Read more