#fossilfuel

They’ll never get it

Yet another example of the lunatics within the Extinction Rebellion (XR). Printing 1000s of paper leaflets and using those evil fossil-fuel based adhesives to fasten them to public and private property. CM is reminded of the echo chamber within XR when they claimed that many corporates backed their cause with a joint letter to The Times UK. As a reminder,

“CM attaches their own published business models in brackets below. We also attach the distance of each HQ from the protest epicentre in LondonIt’s easy to say how woke you are about impacting local businesses when you’re nowhere near it. Read on

The letter to the Times

Sir, Contrary to belief, there is business support for the Extinction Rebellion (XR) agenda. The multi million-pound costs that the Extinction Rebellion protests have imposed on business are regrettable, as is the inconvenience to Londoners. But future costs imposed on our economies by the climate emergency will be many orders of magnitude greater.

Hard pressure drives change, but even the most committed businesses will need time to respond. We welcome the news that  Extinction Rebellion is evolving a new platform, XR Business, to engage business leaders, investors and advisers. To drive things forward, the idea is to convene a meeting of XR activists and experts with business leaders and influencers.

Most businesses were not designed in the context of the developing climate emergency. Hence  we must urgently redesign entire industries and businesses, using science-based targets. 

To kick start the process, businesses should make a declaration that we face a climate emergency and organise a session at a full board meeting to consider the case for urgent action. We will encourage the senior management teams of which we are part to do likewise.

Signed

Seb Beloe, partner at WHEB

(“WHEB is a positive impact investor focused on the opportunities created by the transition to a low carbon and sustainable global economy.“)

HQ Distance from XR protest: 1.3km

——

Thomas Bourne, CEO and co-founder, Greenheart Business Ltd

(“Using the B Corp framework to assess, plan for and embed positive social & environmental impact improvements within your business – from specific operational improvements through to comprehensive or transformational (i.e. business model) change.)

HQ Distance from XR protest: 337.6km

——
Amy Clarke, co-founder, Tribe Impact Capital LLC

(“We use the UN Sustainable Development Goals (SDGs) as a framework for uncovering client’s values and to measure and report portfolio performance…To facilitate this we have created four Tribe Themes…we actively select positive investments that directly contribute to global sustainable development and address a social, economic or environmental issue society is facing.)

HQ Distance from XR protest: 3.5km

——
Chris Davis, CSO, The Body Shop International Ltd

(Social activism has been a part of the Body Shop since 1986 when it proposed an alliance with Greenpeace to save the whales“Protecting and regenerating habitats is also known as ‘re-wilding’. Find out how you can help us re-wild the world and protect our animal friends by fighting against deforestation and the destruction of natural habitats.“)

HQ Distance from XR protest: 107.2km

——–

John Elkington co-founder and Louise Kjellerup Roper, CEO, Volans Ventures Ltd

(“By conducting inquiries into our planet’s most wicked problems, we help business drive positive change at an unprecedented pace and scale.“)

HQ Distance from XR protest: 3.2km
——-

Brad Frankel, CEO and co-founder, Flooglebinder Ltd

(“Our aim is to inspire students to become changemakers and future leaders through a range of educational programmes that connect young people with the outdoors. Our programmes firmly adhere to the United Nations Sustainable Development Goals. By understanding, enjoying and respecting these environments through adventure and play, we hope to develop more global citizens and positive ambassadors for our planet.“)

HQ Distance from XR protest: 267.2km
—–

Jake Hayman, CEO, Ten Years’ Time

(“Whether the cause area is climate change or economic fairness, mental health, homelessness or education, we work with those who are ready to leave the safe ideas behind and want instead to understand, challenge and do their bit to reinvigorate failing systems.“)

HQ Distance from XR protest: 6.4km

——

Jeremy Leggett, founder and director, Solarcentury Ltd

(“We’re in business for a purpose: to make a meaningful difference in the fight against climate change through the widespread adoption of solar power.“)

HQ Distance from XR protest: 4.8km

——

Charmian Love and Amanda Feldman, co-founders, Heliotropy Ltd

(“We broker partnerships across sectors  to support private sector engagement in social and environmental issues.“)

HQ Distance from XR protest: 6.4km

—-
Andy Middleton, founder and chief exploration officer, TYF Group

(“Our mission is to inspire long lives of adventure and promote discovery and care for nature.We create life-changing adventures with a light touch on nature, focus young people’s sight & skills for the future and help organisations with innovation & sustainability. We play for the planet.“)

HQ Distance from XR protest: 387.2km

—-
Safia Minney, founder & Former CEO, People Tree Fair Trade group.

(“Fairtrade promotes training on climate change mitigation for farmers. For example, some training offers advice on switching to environmentally friendly practices, such as developing nutrient-rich soils that support healthy plants and encouraging wildlife to help control pests and diseases.“)

HQ Distance from XR protest: 3.2km

—–
James Perry, partner, Snowball LLP

(“Project Snowball LLP is a pioneering investment organisation that targets social and environmental impact alongside financial return.“)

HQ Distance from XR protest: 60.8km

——
Paul Polman, former CEO, Unilever plc

(“The Unilever Sustainable Living Plan sets out to decouple our growth from our environmental footprint, while increasing our positive social impact. “)

HQ Distance from XR protest: 361.6km

—–
Samer Salty, co-founder and managing partner, Zouk Capital LLP

(“Zouk’s ESG Policy includes an Ethical Investment Policy for negative screening and an innovative and bespoke methodology for assessing the value creation across Environmental, Social, and Governance principles driven by the portfolio companies…Zouk adheres to and is a signatory of the United Nation’s Principles for Responsible Investment (UN PRI) and is also fully Carbon Neutral.“)

HQ Distance from XR protest: 3.2km

—–
Sir Tim Smit, founder of The Eden Project, executive chairman of Eden Regeneration Ltd

(“Get a feel for what we believe in – from the way we run our site to the transformational social and environmental projects that we run on our doorstep and around the world.“)

HQ Distance from XR protest: 396.8km

—–
Hermione Taylor, CEO and founder, The Do Nation Enterprise Ltd

(“If changing behaviours was easy, we’d all be super-fit with PhDs, empty inboxes and spotless bathrooms. And, what’s more, climate change probably wouldn’t be a problem.“)

HQ Distance from XR protest: 6.4km

—–
Diana Verde Nieto, CEO and co-founder, Positive Luxury Ltd

(“Fashion recycling has been on the rise in recent years – so how are consumers shopping pre-worn today? To celebrate Earth Day, we investigate the popularity of the more environmentally-friendly way to stay stylish.“)

HQ Distance from XR protest: 4.8km

—–
Dale Vince OBE, founder, The Ecotricity Group

(“We’ll use the money from your energy bills to develop new sources of green energy. So you can help build a green Britain – just by being with us.“)

HQ Distance from XR protest: 171.2km

—–
Bevis Watts, managing director, Triodos Bank UK

(“Our bank was founded on the conviction that banking can be a powerful force for good. We offer a range of financial and banking services to savers, investors and entrepreneurs who want to change the world for the better. By connecting these groups, we are building a community of people united in their desire to make a positive impact on society, culture and environment.“)

HQ Distance from XR protest: 189km

—–
Tim Westwell, co-founder and former CEO, Pukka

(“Doing good things helps make good things happen. We create things that help you, help nature and everything inbetween. It’s called conservation through commerce – striving to positively change the world for you, business and the planet.“)

HQ Distance from XR protest: 182.6km

—–
Gail Bradbrook (co-founder)  Extinction Rebellion
Fiona Ellis (XR Business)

We’ve covered XR in previous posts. They’re leading this disruption.

—-

So there you have it. Every co-signatory has a vested interest with a business model attached to climate change. Many advertise the brands of other co-signatories on their respective websites. There is nothing woke about signing a letter which seeks self-promotion. Is this about saving the planet or cynically riding off the back of a movement to get press based marketing?

Cate Faehrmann plays investor for a day

Investment managers have difficult jobs. They have to forecast a whole plethora of variables from global economic growth, currencies, commodity prices and micro level corporate industries. If governments can provide ironclad policy certainty, investment choices become relatively easier. Unfortunately, perfect information detracts from performance because things get priced almost instantaneously.

It might be nice that 415 funds all call for a ratification of Paris Climate Accord (which means nothing in practice as the US isn’t a signatory and its emissions have fallen while China is a signatory and emissions continue to rise) but truth be told,  it sounds what is commonly termed in financial circles as “talking one’s book.” NSW Greens MLC Cate Faehrmann pretends to understand finance in her latest piece.

While these 415 firms might represent $32 trillion in assets under management (AUM), the truth is not all of those funds are spoken for in terms of climate-related investments. Investment advisors by their very nature have very diverse client bases. They cover basic low-risk pension (i.e. stable income) funds all the way to riskier return profiles for clients that want more exposure to certain themes or countries. If clients aren’t interested in buying climate funds, the asset managers don’t gather fees. Pretty simple.

Much of the fund industry has focused on ESG (environment, social responsibility & governance) since its inception in 2005. ESG represents around $20 trillion of global AUM, or 25% of total professionally managed funds. Therefore the other 75% of monies are deployed without this in mind. In reality, this is done because investment managers must hunt for the best returns, not those which sacrifice profitability for virtue. If NAB offered you a 10% 1-yr deposit and no solar panels on the HQ roof and Westpac offered a 1% 1-yr deposit because it did, would you invest in the latter based on its ecomentalism?

Let’s take the world’s largest public pension fund (2 million members), California Public Employees’ Retirement System (CalPERS) which is a cosignatory to this demand for climate action. Apart from the fact that this $380bn fund has been so poorly managed (marked to market unfunded liabilities are c.US$1 trillion), its portfolio consists of widespread ownership of met coal, petroleum and other mining assets. It owns bonds in fossil-fuel producing nations such as Abu Dhabi, Qatar and Saudi Arabia as well as highly environmentally unfriendly aluminium smelters in the world’s biggest polluter, China. So there goes the rhetoric of “demanding” Paris is ratified, that we shift to a low carbon economy and we force companies to report their carbon commitments.

It is frightening that some members of our political class believe that investment managers which collaborate in groupthink are worthy of listening to. On the contrary, the performance of many must be sub par. It is a sad reality that 80% of large-cap fund managers fail to outperform the index on a regular basis. So praying for governments to backstop investments they deployed capital into shows more desperation than innovation.

Maybe we should think of Adani as a classic example of investment at work. While Annastacia Palaszczuk’s government is backflipping on the Adani Carmichael coal mine after the electoral drubbing handed out to federal colleagues, the voluntary infrastructure tax is a cynical way to try to make the project less financially viable. After 8 years of ridiculous and onerous environmental approvals, Adani probably think it only needs to wait til October 2020 when an election will wipe out Queensland Labor from government and the infrastructure tax will be repealed soon after.

CM has long held that the non-ESG names are the place to invest. Most of the auto-pilot, brain dead, virtue signalling group think money has been poured into ESG. All non-ESG companies care about is profitability, not focusing on all the soft cuddly things they do displayed on the corporate lobby TV screens on a loop. Sadly when markets inevitably implode, investors always seek safe havens to limit the damage. As so much money is collectively invested together, so the bigger the stampede to the relatively attractive values provided by the stocks that have been cast aside by “woke” investors.

Swedish study on EV CO2 footprint will surprise

The IVL Swedish Environmental Research Institute was commissioned by the Swedish Transport Administration and the Swedish Energy Agency to investigate lithium-ion batteries climate impact from a life cycle perspective. Let’s not forget the left leaning pro-climate change Swedish government promoted the study.

The 2017 report showed that battery manufacturing leads to high emissions. For every kilowatt hour of storage capacity in the battery generated extra emissions of 150 to 200 kilos of carbon dioxide already in the factory. Regular EV batteries with 25–30 kWh of capacity will result in 5 metric tonnes CO2, which is equivalent to 50,000 km driving in a regular, fuel-efficient diesel vehicle.

If we use those IVL metrics on the Tesla Type S 100D battery pack of 100kWh, the car has done 167,000km worth of CO2 before its left the factory. So that would mean 20 metric tons of CO2 per car without taking into account any charging from the grid which is largely fossil fuel derived in most countries.

A 2019 model year BMW 530d diesel emits 138g of C02/km. So it can travel 145,000km just to match a car with a 100kWh battery pack before it leaves the dealership floor.

Does Australia really want 50% sales in EVs if the metrics are this bad?

The irony is that despite the evidence provided by the study, PM Stefan Löfven wrote on a Swedish Government website, “No new petrol and diesel powered cars will be sold after 2030. So we reduce the large climate emissions from the transport sector.

So in order to stay aligned with the Paris Accord, promoted by a U.N. body that has been caught out in numerous climate data manipulation scandals and climb downs from countless hysterical claims, Sweden’s left-leaning government skips over reality.

Where have we heard this before? Martin Kinnunen, climate policy spokesperson for the Swedish Democrats said,

It is a very radical proposal and I think you should be careful about predicting technology development in this way. It is simply unrealistic to have a ban in place already in eleven yearsIt can be difficult for many people who live in some parts of the country to have a car, and it can be very costly for those who must have a car

Only goes to prove that virtue signaling ignores facts. Never mind that the industry can’t adapt that fast. Never mind the environmental footprint on a life cycle basis. Just change the starting point then promote themselves as one of the good guys saving the planet when all that is happened is to set in motion actions that will damage her more than they would have otherwise by allowing the industry to set the technological benchmarks instead.

How not to win over climate skeptics

This is exactly why climate alarmists struggle to sway climate skeptics. Screaming, chanting and laughing hysterically proves what? One thing – no willingness to challenge the thinking with reasoned argument, debate and engagement. If the research is so robust on the alarmist side, why not let the data speak for itself? Surely an open and shut case. Oh that’s right, the science is so settled that government and university bodies continue to be busted for scandalous manipulation of data to fit a ‘political’ wealth transfer narrative. NOAA was subpoenaed by Congress for willful distortions ahead of the Paris summit in 2015. Yet scandals don’t sway the faithful.

Where was the acceptance from the hecklers that US emissions have headed south for several years and likely to remain in % terms little different going forward? Where was the protest against China & India which are cranking up coal fired energy generation out to 2030? Or does blindly signing a document that is non binding and largely ignored in practice more worthy to the protesters that not signing and being more successful on containing emissions? Group think at its worst. CM worries about the future for our kids – not cut short from the risks presented by climate catastrophes but woeful indoctrination which removes their ability to critically evaluate.

How did these people miraculously get to the COP24 summit? Fossil fuel powered jet aircraft and cars perhaps? Did they realise that the steel that went into the transport that delivered them is derived from coal products? Have they not looked outside their own bubble at the 22,000 other disciples kneeling at the altar of the UNIPCC? Are 7,331 observers really needed? The hypocrisy is astonishing. Perhaps they expect the rest of us to offset their carbon footprint?

No it is just better to scream and shout and use kindergarten level tantrums to try to prove a point. No wonder the UN organisers fawned over a 15yo Norwegian girl who they anointed as an expert on climate change. She may have been behind the worldwide school strikes for climate ahead of the summit but it is truly sick to see the exploitation of kids to drum home a message that has failed to cut through on the merits of the science alone.

The irony of these summits is that the crowds attending do not want the circus to end. Every year the scare mongering gets more extreme to keep the attraction going. 22,000 frequent flyer accounts won’t be able to keep status if COP meetings don’t roll on to the next town.

CM is absolutely willing to be convinced otherwise. Happy to listen to sensible solutions that prevent civilians from setting light to their own cities in protest over climate policies that will achieve zero. However hysterical shouting down and chuckling cannot trump well researched and balanced debate. Perhaps when countries like Guinea send two delegates instead of 409 it maybe worth lending a more generous ear.

Being holed up in a hotel in Tokyo, the only English channel is CNN which is broadcasting climate alarmism on a loop. There was a touch or irony that the network featured a story about a Honduran man, who like many others, is escaping climate change at home to seek asylum in the United States, a country, according to the wailers, going the completely wrong direction on climate policy. Go figure. Instead of being in Katowice, these protesters should be on the Mexican border megaphoning that ICE is the least of their worries.