This is how we evaluate the Globalance
Footprint with regard to natural resources and the climate:
A negative Footprint causes
- A shortage of resources
- Losses and hazards associated with landfills and the burning of waste
- Increased greenhouse gas concentration in the atmosphere
- A reduced quality of life as well as health hazards due to local air
- Increasing economic costs as a result of environmental pollution and
the effects of climate change
- A lack of capital for energy transition and innovation in the area of
new materials, etc
A positive Footprint fosters
- Reduced consumption of resources (absolute)
- Increased resource efficiency (relative) through the recycling of
valuable raw materials from waste
- A reduced ecological Footprint and an increase in biocapacity (in
keeping with the Global Footprint)
- Reduced “carbon-intensity”, i.e. lower greenhouse gas emissions
- Increased innovation in the area of cleantech
- Production and distribution of renewable energies
- An understanding of the financial consequences of climate change
Your Footprint Map for the topic
|4Q Smart Power||0.13||67|
|CAF Corp Andina Fomento||0.08||53|
|First State Infrastructure||0.15||62|
|ZKB Gold ETF||0.07||33|
- Colours indicate the Footprint-Scores
- Field sizes indicate proportion of invested capital
The three best investments
The three investments with the best Footprint for this theme are:
Global Context: Climate Change and Global Warming
Climate change creates numerous ecological and social challenges. Economies and market participants will have to deal with them in the near future.
What this chart tells us: Warming trend with regional differences
The graph shows the
change in annual average temperature in degrees Celsius for each grid point of
earth’s surface. The change is measured between the years 1901 and 2012. Blue
areas indicate a dropping temperature in this timeframe. Red and purple shading
show areas where the earth’s surface has become warmer. White spots indicate
missing or incomplete data. Grid points marked with a cross show statistically
significant differences. This graph was published by the Intergovernmental
Panel on Climate Change (IPCC) in the 2013 Summary for Policy Makers of the 5th
Warming of the climate system is unequivocal, and since the 1950s, many of the observed changes are unprecedented over decades to millennia.
IPCC AR5: Summary for Policymakers (2013)
Context: Mitigation efforts are insufficient
Climate change is threatening the existence of entire ecosystems. Human beings are among the affected organisms. Increasing occurrence of natural disasters, dropping agricultural yields, species on the brink of extinction, increasing water scarcity and rising sea levels are but a few examples from a long list of long-term effects of climate change.
Climate change is the biggest market failure in human history according to the 2006 Stern Review. It estimates that if mankind does not act, the overall costs and risks of climate change will be equivalent to losing at least 5% of global GDP each year, now and forever. If a wider range of risks and impacts is taken into account, the estimates of damage could rise to 20% of GDP or more. The current mitigation measures are not sufficient to prevent this.
Investment-Relevance: Early measures pay off in the long run
Governments are facing increasing public pressure to fight climate change. Sooner or later they will have to act in one way or another. Companies that have implemented mitigation measures in their business processes will enjoy a competitive advantage when new legislation is put in place.
The same is true for investors’ portfolios. Many industries will have to reduce their emissions in the future. High necessity for improvement translates to higher financial risks on a company level. Risks that affect profitability, solvency and stock prices.
30% of the CO2 emitted by mankind has been absorbed by the oceans. Ocean acidification is a direct result of this development.
Mankind has emitted an estimated 555 gigatonnes of carbon to the atmosphere since 1750. One gigatonne is equivalent to one billion tonnes.
Methane and CO2 concentrations in the atmosphere are now higher than at any point in time in the last 800,000 years.
Relevant sources of guidance for the Globalance Footprint
When assessing a company’s contribution to climate change, we use the statements and scenarios provided by the IPCC as a baseline. The information published in the «Summary for Policymakers» is more than a scientific consensus. The statements contained in this report are agreed upon by all 195 current member states of the IPCC.