What to Do, Not What Not To…

The new World Bank president Robert Zoellick has recently given a speech in which he makes a point that I have been pushing for years. God bless him.
Which is that, no matter how well-intentioned we are, human beings operate on self-promotion. That is, we like to do things which are good for us (and ideally for other people as well) rather than avoiding things which might have a negative effect on others but have no immediate benefi ts to us. Mr Zoellick recently warned the World Bank’s rich-country shareholders that ‘they would not be successful’ if they tried to change the focus of the Washington-based institution from developing markets to cutting greenhouse gas emissions.
Now, as a specialist in green, ethically-screened and environmentallysensitive financial products, you might expect me to be rather scurrilous about this. But no. I think he’s right.
Let me put this into perspective. I was recently shown a Ryanair advert which offered a flight to Venice for 1p. I love Venice and 1p…? I’d love to have gone and was strongly tempted to take up the offer, despite my dislike for the provider who I regard as …er…ethically questionable, let’s say. And I could hear myself arguing that the plane would be going anyway even if I wasn’t on board so I wouldn’t really be adding to CO2 emissions, and that I could purchase some carbon-offsetting nonsense etc. etc. And I turned it down. But despite the fact that I had a clear conviction that it wasn’t appropriate to take up the offer, part of me feels a bit cheated.
Whereas, I save regularly in a fund which concentrates on sustainable and renewable energy and which makes me quite a lot of money. And I feel really good about the combination of environmental responsibility and supporting practical technology. And making money. You take my point?
Mr Zoellick continued his speech by saying that he’d ‘picked up a lot of nervousness’ – particularly among Africans - that some large countries would make a serious commitment towards dealing with climate change. This was because we are their main market and, if we stop importing goods from them because of the air miles involved, their economies will suffer.
All this is despite the fact that under-developed areas such as sub- Saharan Africa are likely to be even more affected by global warming than those in the northern hemisphere. Appalling events such as the wars in Darfur are widely regarded as being triggered by climate change. But of course, it’s realistic to concentrate on the short-term if you are more concerned about not starving to death in the near future than significant desertification happening over the next fifty years.
However, the speech went on to reassure the Africans that they needn’t worry too much – although that wasn’t really intentional. This is because there’s a difference between talking about things like global warming and actually acting on them. Mr Zoellick pointed out that a large number of countries had committed to making donations to the Third World at the Gleneagles convention last year – but that the majority of them hadn’t actually fulfilled their pledges. In fact the level of support for the Third World has actually decreased for the first time since 1997. So don’t worry, guys! We may talk about decreasing carbon emissions, but we’re not really going to act on it! You’re safe! Er…well….
Which suggests that we can’t really rely on people higher up the hierarchy. But it’s also pretty tough to take responsibility for an entire continent. So if we’re going to do this it’s not enough simply to avoid doing certain things. ‘Cos when it comes down to it, we’re really best at looking after ourselves. If we’re actually going to tackle issues like atmospheric breakdown we need a strategy with short-term incentives. Something which rewards people and make them feel good now. Not in fifty years.
Now it’s true that if you start to avoid certain things you can subsequently discover that the alternative if a fantastic experience – you stop driving a gas-guzzling SUV and watching television all night and take up cycling and interacting with your community and find that your life starts to feel enormously richer. Yes. But the motivation is a double-negative. We’re doing something because of what it isn’t, rather than because of what it is – and we’re surprised to find that it’s wonderful. Which makes it unlikely to become a mass movement in the short term.
Contrast this with investing in serious green funds which make money by supporting the kind of technology which reduces carbon emissions. And makes you money. You see the difference?
And Africa? H’mmm. More of a problem. Because society has changed and things like organic food and buying your courgettes at local farmers’ markets has become something of a lifestyle option. That is, it looks good, feels good, tastes good and you’re doing something intrinsically positive which has advantages to all concerned. Should you give all this up and buy imported products at the supermarket on the basis that you’re looking after the Third World? I don’t think so.
And …there is a possible way forward. There are a number of funds being launched which are supporting the development of business in Africa. Particularly countries such as Malawi, Zambia and Tanzania. It’s sufficiently early that we can’t yet guarantee a particular return, but they’re looking good. Actually, rather more than good. And what’s radical about them is that they’re not a guilt-free way of going broke. They’re designed to make money for all concerned which will include developing local markets in Africa so that goods don’t necessarily need to be transported across the world. Which means lower carbon emissions, possible financial returns and absolute integrity. And you can keep going to the farmers’ market and buying organic garlic.
Want to find out more? Call me!
Robin Currie is an Independent Financial Adviser specialising in green, ethically-screened and environmental-sensitive financial products. For an appointment call 01392-411630 or e-mail robin.currie@barchestergreen.co.uk. You can also log on to the website www.barchestergreen.co.uk. Robin also runs the highly acclaimed workshop Making Friends With Money www.makingfriendswithmoney.com or call 01392-346336.