You Can't Put the Genie Back into The Bottle.
Solution's by Sonia Founder, Sonia Derizler, recently interviewed
Garvin Jabusch, CIO of Green Alpha and you can't go back to simply buying the an index fund, if you believe this to be true. You can't put the Genie back in the bottle, you can't go back to "normal" once you read this:
"The time when marginal measures around climate disruption and resource degradation might have worked is over. Transformational change is upon us, in terms of both the dangers of planetary risks confronting us, and in terms of the innovations emerging to confront those. Embracing that confluence is where economic growth can and must occur.
I think it is safe to say that if a company isn’t reducing the risk profile of the economy, it won’t have tailwinds for growth in the future. The major indexes mostly reflect the legacy economy, which is a fossil fuels-powered, destructive economy that has brought us to the brink of existential risks, especially around climate disruption and resource degradation. If you own the S&P 500 you own approximately 60 fossil fuels and fossil fuels services companies, plus a bunch of fossil-fired utilities, and fossil fuels demand drivers like internal combustion engine makers, as well as other destabilizing businesses. So, though we’re all constantly told major benchmark index investing is passive, it is anything but. If you own the S&P 500, you are making an active bet on system-level collapse."