Update on Positive Returns From Divesting and Reinvesting

Update on Positive Returns From Divesting and Reinvesting

Walter Whiteley, member of the TSP Climate Justice Group and former TSP Trustee.

 

Over 3 years ago, TSP voted to divest from Fossil Fuels – based on our social commitments – with the anticipation that we could still obtain good financial returns and better social returns.  In the process of reinvesting, TSP Trustees chose Genus Capital Management Fossil Free Funds, including some impact funds, for most of the endowment.   We have seen good returns from these investments – and a recent report found that, overall reduced carbon intensive portfolios had lower returns than low carbon portfolios, over the seven years 2010-2017, low carbon intensity improved returns by 9.2% cumulatively.

 

Genus Capital released their inaugural Carbon Emissions Report this week, , which makes some key findings, relevant to our choices collectively, and individually.

 

From the Genus report:

“A company’s COemissions, or carbon emissions, is a particularly significant measure for those investors who are concerned about climate change and the environmental impact of their investments. Genus’ inaugural carbon report examines the relationship between carbon emissions, carbon intensity and investment returns. The research team at Genus applied factor analysis to isolate the impact of carbon intensity on a portfolio of global investments (35% S&P/TSX Composite/ 65% MSCI World) between 2010 and 2017.

 

The research indicated that carbon intensity had a 9.2 per cent cumulative drag on portfolio performance during the seven-year period ending March 31, 2017. Carbon intensity refers to the volume of a company’s carbon dioxide emissions for every million dollars in revenue (USD). ”

 

Moreover, the report concluded that Canadian companies tend to be among the worst offenders when evaluated based on carbon intensity when compared to other developed world equity markets, owing to the Energy sector’s significant weighting in the Canadian market. “

 

Put positively, fossil fuel divestment refocuses choices on better performing assets and companies. Also Global markets offer a better range of low intensity stocks and bonds than the Canadian markets.

 

This Genus research builds on last year’s Fossil Fuel Divestment Report, which compared their own three year returns with the Canadian market.  Together, these underscore that investors needn’t sacrifice investment returns to own a portfolio that’s aligned with their values and helps build a low carbon future.

 

These are exciting and active times for divestment, positive re-investment and new opportunities to learn and act.  Here are a few more links:

Talking Lysistrata with Director Leah Cherniak

Talking Lysistrata with Director Leah Cherniak

Leah Cherniak is the Co-Founder with Martha Ross of Theatre Columbus (now Common Boots Theatre) in Toronto. The company created over 30 new plays and has an excellent reputation for innovative productions of classics. Leah studied theatre at École Jacques Lecoq in Paris after graduating from U of T with a theatre degree from the University College Drama Program. She is an Associate Artist with Soulpepper Theatre Company. We caught up with her in early April as she was starting to get ready for rehearsals.

Q. Are you excited to be bringing this new play to an audience for the first time?

A. I’m always excited to be doing something new with David – even though it is just a single performance. He’s a fantastic talent and I’m really enjoying working with him on putting this reading together.

Q. Is this play a modern classic or a classicly modern one?

A. It is definitely modern and contemporary but I think of it more as a complete reinvention of a classic play. The main characters are there but the situation, dialogue and the struggle are completely reimagined for today’s audiences.

Q. What has intrigued you the most about reading the play so far?

A. I directed another version of this play about 15 years ago so it is really fun to read something you are already familiar with and then see how the playwright has adapted and changed the source material. I also love the fact that the women in this play are the strong characters that move the action and are counteracting the actions of the men’s agenda. It’s also really funny.

Q. Lysistrata is a dramatic reading rather than a full-on play – how does that make your job as Director more difficult?

A. As a Director I can only prepare so much because we have very limited rehearsal time. This makes the project more fun but also more challenging. We will need to really focus on the essential parts to activate the audience’s imagination and bring the world of Lysistrata to life.

Q. I understand that there will be some Greek Chorusing going on – how will you be using that?

A. Lysistrata is not a musical but the Greek chorus will bring some music and song that will help to play up the comedic aspects. The songs have a lovely cabaret style vibe that sets the comedy going from the beginning and sustains it throughout as the they keep coming back with “new and improved” messages for the cast and audience.

Q. How do you feel about the issue at hand – is climate change affecting your life today?

A. Experiencing Lysistrata & the Temple of Gaia is a great reminder to everyone that we need to keep focused on this issue – we need to get on with fixing things and stop talking about it. The play is not prescriptive but still very forceful. Comedy is a great way to get a point across to a broad audience.

Q. What do you think the audience should know about Lysistrata before seeing the show?

A. This is not some kind of fusty old Greek classic. David has done an amazing job of making this play really contemporary and witty. It will be a delightful afternoon.