Climate change, economy, environment, retirement, risk management

Climate Change, Sea Level Rise and Retirement Risk

One of the oft repeated risks from climate change is the threat that comes from rising sea levels. Depending on the forecast, even in the most optimistic ones, seas are projected to rise several feet before the end of the century. With the accelerating build-up of CO2 and the rate of temperature increase (2017 being the hottest year on record), many expect dramatic sea level rise to occur much sooner than most expect. CO2 concentrations in March 2020 was 414.5 ppm, much higher compared to 411.97 ppm in March 2019. (1)

 

While people might want to buy shore property for benefits that include potential rental income, capital appreciation and personal use, they also face potential risks of hurricanes, sea level rise, etc. Some of these risks can be mitigated by purchasing flood insurance.

 

Last summer I explored the question, “if sea levels rise, what will be the impact on a clients’ net worth and portfolio?”

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Climate change, environment

First-hand insights on Climate Change impacts in Bangladesh: An interview with Susmita Saha

Climate change continues to accelerate, affecting people’s near term expectations.

A recent World Resources Institute (WRI) study found that “147 million people will be hit by floods from rivers and coasts annually by the end of the decade, compared with 72 million people just 10 years ago.” (1)

Damages to urban property will soar from $174bn to $712bn per year. By 2050 the cost to cities will exceed $1.7 trillion.

Charlie Iceland of WRI said, “Now we’re actually seeing this increase in magnitude of the damages in real time. We’ve never seen these types of floods before.” By 2050, “the numbers will be catastrophic.”

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Climate change, economy, environment, health, new economy, retirement, risk management, Socially Responsible Investing

How Will COVID19 Potentially Affect the Climate Change Debate?

As the severity of the COVID19 pandemic became clear to leaders in China in early 2020, the CCP announced the quarantine of over 800 million people and effectively closed down the economy of China. One of the effects of this shutdown was a dramatic drop in carbon emissions and air pollution.

Paul Monks, professor of air pollution at the University of Leicester, predicted there will be important lessons to learn. “We are now, inadvertently, conducting the largest-scale experiment ever seen,” he said. “Are we looking at what we might see in the future if we can move to a low-carbon economy? Not to denigrate the loss of life, but this might give us some hope from something terrible. To see what can be achieved.” (1)

“What I think will come out of this is a realization – because we are forced to – that there is considerable potential to change working practices and lifestyles. This challenges us in the future to think, do we really need to drive our car there or burn fuel for that,” said Monk.

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Climate change, economy, environment, ESG, risk management, Socially Responsible Investing, SRI

US intelligence agencies warn about managing risks in a climate changed world

A recent report by the US national intelligence agencies raised the issue of Climate Change and the impact they expect it to have on global stability.

“The nation’s intelligence agencies are warning, in the annual Worldwide Threat Assessment, of global instability if climate change continues unabated, according to a report submitted for a hearing Tuesday before the U.S. Senate Select Committee on Intelligence.”

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Climate change, economy, environment, ESG, retirement, risk management, Socially Responsible Investing, SRI

Climate Concerns Rise, but Energy Sector is Fighting Back…

In the past year Climate Change has become a focus of central concern for people worldwide. Warnings have been issued by IPCC that we need to collectively and drastically reduce our use of fossil fuels within 10 years in order to avoid the worst impacts of a rise in temperatures above 1.5 degrees.

Institutions are joining in the demand for change.

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AI, Climate change, economy, new economy, retirement, risk management

The Work of Nations: 30 Years On…

When I first read “The Work of Nations” by Robert Reich in the mid-1990s I had almost no background in macroeconomics. (1) But in reading it, Reich was able to effectively describe how radically the economic system was changing as a result of Globalization. Reich at the time was Bill Clinton’s Secretary of Labor and a key member of his economic team.

As context, China’s economy in 1991 was $400 billion compared to $6,174 billion for the US. China entered the global trade organizations in 1992. Today China’s economy is $14 trillion compared to $21 trillion for the US.

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Climate change, diversity, environment, ESG, retirement, Socially Responsible Investing, SRI

What is Socially Responsible Investing?

I have recently had several people ask me about SRI. What is it? Why does it matter?

The first thing to understand is SRI means different things to different people. Several years ago I attended a gathering of advisors focused on sustainability at the Bloomberg headquarters in NYC. I talked to many of the 300 attendees and what I found was every single person had a different interpretation of what SRI meant.

Some focused on promoting clean energy, some focused on workers issues and inequality, some focused on climate change, some look to exclude alcohol and tobacco, others focused on micro lending. Each focus is unique and approaches the challenge of investing with different assumptions.

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Climate change, economy, environment, ESG, interest rates, retirement, risk management, Socially Responsible Investing, SRI

Mixed Economic Signals, Debt Issues and Fossil Fuel Companies

Several years ago, Bloomberg Businessweek did a bio pic on Hank Paulson, Bush’s Treasury secretary who served during the Financial Crisis of 2008. After reviewing the events that led to the Crisis, connecting the dots, and seeing the impact of what happened, Paulson had this to say at the end of the film…

“The whole reason I’m doing this, is not because I want to look back, but because I have increasingly come to the view that it’s important that there be a historical record for those that come after me, so we don’t replay this movie all over again.” (1)

Fast-forward to November 2019, and we see many positive and negative conditions developing that raise questions about the longevity of the 10-year bull market in stocks and the health of the US economy.

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Climate change, environment, ESG, retirement, risk management, Socially Responsible Investing, SRI

Socially Responsible Investing Grows

“Integrity is the essence of everything successful” -Buckminster Fuller

One of the benefits of the information age is the ability to make rational judgements about companies that you invest in. To the degree that a company fails to meet an investors expectations of what is acceptable, a company or industry becomes un-investable.

“Sustainable, responsible and impact investing (SRI) is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.” (1)

A recent study by the US Sustainable Investment Finance Foundation revealed the tremendous growth in sustainable investing.

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Climate change, economy, environment, income, retirement, risk management, Socially Responsible Investing, SRI

Rising Seas and the Risk to Retirees

Florida has always been considered a favorite retirement destination. The warmer climate attracting older American’s who have health issues ranging from Asthma to Arthritis, from Heart Disease to Parkinson’s. 20% of Florida’s population is over age 65 (compared to only 15% in New Jersey).

An additional challenge facing retirees in both Florida and New Jersey is climate change risk due to rising seas, storm surge and the potential loss of property in coastal communities.

In 2013, hurricane Sandy delivered a wake-up call to many about the danger to real estate as a result of hurricane force winds and storm surge. This past summer it looked to be Florida’s turn. Hurricanes Irma and Maria threatened to make landfall in Florida with devastating force.

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