Climate Justice through Ethical Investing

“Well done you good and faithful servant” … 

These words from Matthew 25 were spoken by the master in the parable of the talents. The servant who had been trusted with five talents used them wisely and was able to return another five to his master.  

A talent in the New Testament amounted to a substantial sum of money. As the servants were entrusted with significant amounts, they knew the master expected them to use his wealth carefully and put it to good use. 

The third servant was given less but obviously lacked the strength of character of his fellow servants and was too frightened to risk losing any of the money. On the master’s return this servant was admonished and was told “You should have put my money on deposit with the bankers, so that when I returned, I would have received it back with interest.” (Matthew 25:27) 

 I have always felt sympathy for the third servant who just buried what he had been given, as he didn’t want to make a mistake and anger his master.  I have worries about managing my finances but my concern for the environment has led me to a greater interest in who is doing what with my money.  

Tim Nash of Good Investing, a sustainable investment manager, says there are two choices for investors, “doing less evil” and “doing more good.” The “doing less evil” (or negative screen) would be not investing in fossil fuels, tobacco, palm oil, alcohol, weapons. “Doing more good” (or positive screen) would be investing in companies that produce renewable energy or companies run by Indigenous groups.  

For a few years, the Climate Justice Niagara committee has been discussing ethical investment practices. We have shared where we are getting good returns while choosing investments that are responsible and are not harming the planet.  

Below are just some of the ideas that members have discussed. 

1. Divesting some of your money from one of the big five banks. Banks lend money to oil companies and if this bothers you then open an account with a local Credit Union. It is an ethical way to bank and supports local sustainable options. They provide most of the same services as banks. 

1. For those who are searching for a new financial advisor ask questions to be sure their values on the environment match your own.  Can they assure you that they are not investing in the fossil fuel industry?   

1. Buy promissory notes with local organizations such as Indwell in Hamilton. Indwell is a Christian organization that builds low-income housing. 

1. Bonds can be bought in companies that offer green alternatives such as SolarShare 

They have a minimum amount that needs to be invested but have good, fixed-interest returns. 

1. Ask your financial advisor to invest in ESGs but be sure that they exclude fossil fuels. 

Environmental is how a company’s practices affect the natural environment. 

Social is about relationships with employees, customers, and suppliers. 

Governance is to do with the company’s leadership and shareholder rights. 

1. Tim Nash gives advice via webinars and emails through his company www.goodinvesting.com – some of his webinars are free.   

Whatever step you take in investing there are risks but our beautiful world is something that we need to take care of now and for future generations; it is possible to use our monetary resources for the good of the earth. Doing nothing to slow climate change is the greatest threat today. 

 No one can do everything, but everyone can do something and maybe the master will say “Well done you good environmental servant”.