GRP scientist and academic Professor Chris Rapley points pertinently to the different emphasis that can be linked to finance and climate change.
At a talk given in the City recently, Rapley spoke of how “Climate change is revealed by science, but is not about science.”
He also spoke of the question of whether the environment serves the economy or, whether the economy should serve the wellbeing of the environment.
Yan Swiderski, co-founder of the GRP, explains that amid increasing donations there are developments in taking the project forwards.
He says: “We know wealth advisers are a critical leverage point in unlocking significant funding for climate and biodiversity charities. To-date, however, climate philanthropy has played almost no role in financial planning.
"Yet we believe climate philanthropy should be a part of any asset allocation strategy because protecting and enhancing the planet makes all our financial investments less risky.”
GRP’s proprietary methodology assesses charities according to their impact, scalability, networks and co-benefits.
That fourth category, co-benefits, determines the extent to which a charity addresses the UN Sustainable Development Goals beyond the GRP portfolio’s three climate objectives:
- Climate Action (UN SDG 13)
- Life Below Water (14)
- Life on Land (15).
Swiderski says: "In this way we ensure that all our charities deliver social co-benefits alongside their other work, including empowering women and more generally fostering diversity, equity and inclusion.
"Last year, for example, ClientEarth supported Torres Strait Islanders in bringing the first ever human rights-based climate case to the United Nations – and winning."
Rainforest Trust has made a long-term commitment to support Indigenous and traditional communities and to secure legal land tenure and management rights of their territories.
And one of Blue Marine Foundation’s key strategic interventions is developing models of sustainable fishing proving that low-impact fishing benefits marine life, local fishers and communities.
Building momentum
To a certain extent, any activity which connects client investment with their vision and values, should be a cycle building a momentum towards investment and return both in terms of the purpose/ cause and financial returns.
Stewardship, CCLA and the Global Returns Project are all valuable examples of companies that advisers can showcase to clients seeking an ethical and developmental way to build a better world for themselves, their families and wider society.
But to make any recommendation, relevant and deep conversations will need to be had from the outset about the way in which clients want to have an impact.
By increasingly having these conversations, this will build momentum into an adviser's relationship with a client, and lift the veil on the capacity of money to find its fuller expression in being an agent of change.
According to the specialists FT Adviser spoke to, this is something powerful and rewarding, and should set up adviser-client relationships on a positive note for many years to come.
