Page 25 - ARUBA TODAY

BUSINESS Monday 15 July 2019
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Heating up: Hotter Earth drives dollars to sustainable funds

By STAN CHOE While in the past, you might
AP Business Writer have said this is coastal, or
NEW YORK (AP) — This year this is liberal, that’s just not
is on pace to be one of the the case anymore. Institu-
hottest on record, again, tions, as well as individuals,
and the trend may only ac- from every background
celerate as President Don- around the country are sit-
ald Trump loosens policies ting up and taking notice
meant to combat climate that their portfolios need to
change. be managed in a way that
That has some investors feel- deals with these risks and,
ing anger, but others are in some cases, opportuni-
seeing dollar signs. They’re ties.
envisioning profits made by Q: How about the compa-
companies targeting op- nies you invest in: Have you
portunities wrought by the found them to be more
changing climate. Perhaps open to talking with you
more importantly, investors about environmental and
are also seeing big, poten- other issues?
tial losses to be avoided. A: Companies are much
Consider the recent bank- more receptive. We’ve
ruptcy filing of PG&E, the even got some companies
California utility owner fac- proactively coming to us,
ing mountains of potential where we are beginning a
liabilities due to wildfires dialogue.
that devastated northern In this July 2017 photo provided byCalvert Research and Management, John Streur chief executive Q: Is that across the board,
California. Some funds that officer of Calvert Research and Management poses for a photo. or only in some industries or
take environmental, so- Associated Press in some countries?
cial and corporate-gover- month’s announcement to A: Trump is the proverbial el- thought this was something A: I have to say, really
nance factors into account help coal-fired plants? ephant in the room against that the next generation across the board, even in
when making their invest- A: We certainly have had which governors, mayors, was going to deal with. China, which is almost a
ments long ago decided to significant inflows in new and asset owners are all Today, they realize this is different system.
avoid PG&E, which meant business since Trump be- trying to create their own something we have to deal Q: Part of that is because
their investors didn’t take came president. There’s a strategy to protect physi- with right now. your funds can hold their
losses from the bankruptcy. secular, big trend occurring cal assets and financial as- Q: You wrote something investments for a long
That’s one reason why de- that’s favorable for ESG, sets. Very few people say, recently highlighting what time?
mand is continuing to grow but if the government were “I track this back to Trump.” the president of the Fed- A: Our big growth fund,
for such funds, often called doing everything it possibly Q: Is climate change the eral Reserve Bank of Dallas Calvert Equity, has turn-
“ESG” investments in the in- can from a regulatory, pol- No. 1 thing on the mind of said recently about climate over below 30% and in
dustry, says John Streur. He icy perspective, investors investors coming to Cal- change, and how Texas some periods even lower
is chief executive officer of would be less likely to take vert? may not be the place than that. I think with ESG
Calvert Research and Man- special action. When the A: It’s been the No. 1 issue where ESG investing is most engagement, done the
agement, one of the larg- government is going back- for a period of time, and it’s welcome. Are your inves- right way, you’re really fa-
est families of responsibly ward on these issues, inves- attracting more attention tors all along the coasts? cilitated by being a long-
invested mutual funds. The tors are much more likely to and rigor. So much infor- A: What we’re finding term investor. You can’t
conversation has been ed- say, “We need to deal with mation, aside from Trump, is around the country is peo- have engagement with
ited for clarity and length. this ourselves. We need to becoming available about ple who might not have a company if you’re go-
Q: ESG investing has been make sure they are man- the risks to physical assets, come to this form of invest- ing to sell the company in
getting more popular for aging these risks properly, plants, property, equip- ing previously have recog- three months.q
years, but was there any because the regulatory ment, the risks to businesses nized that these issues re-
pickup specifically be- framework is not as helpful in terms of just conducting ally matter to the long-term
cause of Trump? Like af- as it could be.” their business during severe success of the companies
ter he announced the U.S. Q: Are investors specifically weather events, risks asso- they invest in. And that’s
withdrawal from the Paris mentioning him when they ciated with wildfires. bringing everybody to the
climate agreement or last bring money to your funds? Five years ago, people table.

Taiwan defends U.S.

arms deal after

China sanctions threat

TAIPEI, Taiwan (AP) — Tai- strengthen Taiwan’s self-
wan on Saturday defend- defense in the face of a
ed a proposal to purchase growing military threat
$2.2 billion in arms from the from China, the defense
U.S., following a Chinese ministry said. Taiwan President Tsai Ing-we, seated second from left, pose
announcement that it “The national army will with participants at the U.S. Taiwan Business Summit, Friday
would sanction any Ameri- continue to strengthen its July 12, 2019, in New York.
can companies involved key defense forces, ensure Asociated Press
in the deal. national security, protect that the fruits of freedom be attacked,” the ministry
U.S. weapons help its homeland and ensure and democracy won’t said in a statement. q