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BUSINESS Tuesday 29 November 2016
A25

The Trump effect on environmental investing: Positive?

STAN CHOE I don’t think ESG investing abling of progress forward
AP Business Writer is going to decrease, be- that there’s a sense that in-
NEW YORK (AP) — Don- cause most companies vestment won’t be enough.
ald Trump’s move into the and investors still see a lot Fatalism could do it.
White House could drive of risk around environmen- A rollback in the creation
even more dollars into the tal issues. of new products could also
already hot field of sustain- Now, we’re getting put in do it, where you’re offering
able investing. Wait, what? a defensive crouch, which fewer funds. But I don’t see
Trump has called climate is OK. If you’re going to those things happening. I
change a hoax, said he’d push back on the limited see increasing interest.
like to pull out of the Paris amount we’ve been able
Agreement on global to do on climate, including Q: US SIF counted more than
warming and suggested the Paris Agreement, we’re 1,000 ESG mutual funds,
rolling back the carbon- going to push back on that ETFs and other kinds of
cutting Clean Power Plan. pushback. funds in existence, up from
Isn’t his victory a sign that We’re going to see sus- only about 200 in 2001. Usu-
Americans don’t believe in tainable investors pushing ally, when that many new
climate change? companies on this. products are chasing after
Regardless of what was customers, some of them
said on the campaign trail, Q: And people won’t see turn out to be shoddy.
a growing number of inves- less of an incentive to invest A: I think there are defi-
tors do care about the en- in a sustainable fund given nitely money managers
vironment, says Lisa Woll, the change in the White who have been drawn to
chief executive of US SIF, a House? the field because they see
trade group whose mem- A: There’s very little the they can get clients. They
bership includes mutual- government has done that love that it makes their cli-
fund companies, pension said, ‘If you invest in an ents stickier. They love be-
funds and others interest- ESG fund, we’re going to ing able to talk to an inves-
ed in sustainable investing. give you a tax deduction.’ tor about what their values
Those investors are putting There hasn’t been that sort and their passions and
more money into mutu- of carrot provided to do hopes are for that money.
al funds and other money this work. The carrot has I think there’s something
managers who take not been recognizing that it’s a about that that’s very excit-
only the environment but This photo provided by US SIF shows Lisa Woll, CEO of sustain- better way to invest and a ing around people.
also social and corporate- able-investing group US SIF. Woll said Donald Trump’s election better way to manage risk. Because there’s been so
governance issues into ac- could actually lead to more demand for investments that take For religious investors, it’s a much interest in this, you’re
an environmental or sustainable approach.
count when making invest- (Adrian Nastase/US SIF via AP) values-based approach. increasingly having money
ments, a so-called “ESG” None of those go away. managers say that they
approach. drop-off in sustainable in- companies, are increas- do ESG investing, but they
More than $8.7 trillion is in- vestment? ingly concerned about Q: So, if not the election, aren’t identifying what cri-
vested with managers who A: No, I don’t, because the climate. There are a lot of what could trip up the teria they’re utilizing to do
consider environmental, reality is no one’s going to people involved in Earth growing demand for sus- that.
social and governance is- be less concerned about Day and environmental is- tainable investing? Is it the The reality is you can only
sues, according to a sur- climate. They’ll perhaps sues. Many of those people higher costs? hold that position for so
vey published this week by be more concerned, if the on the street protesting A: Only sometimes are long, and then you’ve got
US SIF. That’s up 33 percent incoming administration now, part of that is about there higher costs. There to be able to deliver both
since 2014. actually does stand by its climate. are a lot of funds that are performance and expec-
Woll recently talked about rhetoric around pulling out not higher cost. It depends tations around your evalu-
ESG investing, the elec- of Paris and rolling back the Q: But maybe that segment on how much shareholder ations of ESG issues.
tion’s impact on the grow- Clean Power Plan, which of the population is smaller engagement they’re do-
ing field and some of the is one of the only things than everyone thought. ing. In some cases, you Q: Do you think any funds
risks inherent in investing in President Obama could The segment of Clinton want to pay for that extra are lying? Looking to cash
such a hot area. Answers get done on climate dur- voters was certainly smaller level of scrutiny that goes in on a fad by calling them-
have been edited for clar- ing his presidency because than pollsters thought. on. selves sustainable without
ity and length. he couldn’t get anything A: That might be. But I really What could trip it up is a actually considering com-
through Congress. do believe that the march sense that what is happen- panies’ environmental, so-
Q: You really don’t think Companies, and the peo- to a lower-carbon econ- ing at the national level is cial and governance im-
the election will mean a ple who invest in those omy has already started. so catastrophic or un-en- pacts? q
Global economic agency urges more infrastructure spending

PARIS (AP) — An interna- an upbeat note in its lat- omy may be at a point of of low rates. Gurria noted an increase in economic
tional economic agency est world economic out- inflection,” as low interest that markets have rallied activity,” he said.
said Monday that the kind look Monday, thanks in part rates give governments on Trump’s promises to cut The OECD raised U.S.
of infrastructure spending to stimulus efforts planned more freedom to lower tax- taxes and increasing infra- growth forecasts slightly
promised by U.S. President- in the U.S. and China. The es and spend on infrastruc- structure investments, but to 2.3 percent for 2017,
elect Donald Trump could OECD raised its forecasts ture and education, OECD said it remains unclear how and predicted 3 percent
boost global growth, but for global growth to 3.3 chief Angel Gurria said. many of those pledges growth in 2018 based on
warned that protectionist percent for next year, up The Paris-based intergov- Trump can or will fulfill. “an assumed easing of fis-
tendencies hurt prosperity. from 3.2 percent in its last ernmental agency encour- “There is an expectation cal policy.” The forecast for
The Organization for Eco- outlook. After years of low aged governments such that if this mix is actually eurozone growth next year
nomic Cooperation and growth, “there is reason to as Germany to take more practiced, if it happens, if it was also shifted upward to
Development overall hit hope that the global econ- advantage of this window becomes real, there will be 1.6 percent.q