Investing in Health

Concerns surrounding our investments in coal, oil and gas companies through our superannuation funds are increasing in Australia and there are compelling reasons why doctors as health advocates should be divesting from industries which are the main drivers of climate change. We did it with tobacco, why not now with fossil fuels?

It is estimated that climate change is already responsible for 400,000 deaths per annum[1]. The recently published paper, The Lancet Countdown[2] on health and climate change, cites impacts on work productivity due to rising temperatures, undernutrition through impacts on crop production, a dramatic rise in heatwave events globally and a striking increase in the transmission capacity of Dengue due to climatic trends.

In addition is the mounting health cost of fossil fuel combustion, with air pollution from coal power, transport and fossil fuel use in the home accounting for 803,000 premature and avoidable deaths across 21 Asian countries in 2015[3].

Given the magnitude of impacts, the Investing in Health report sees fossil fuel divestment as a vital public health intervention, one in which all health organisations and health professionals (a workforce of over 600,000 in Australia) can take part and actively promote[4].

Globally, from local councils to church groups to state sovereign funds, divestment from fossil fuels continues unabated; $5.5 trillion dollars in total has been divested[5].

Within the health sector in Australia, Medibank recently divested tens of millions of dollars in fossil fuel investments because of the health effects of climate change.

The decision follows similar actions by private insurers NIB and HCF[6].

In parallel has been the global transition to a low carbon economy, driven by the sustainable investments required to reach the Paris Agreement targets. The market for green bonds alone – those directed to environmental or climate projects – has risen from $US11 billion in 2013 to $US65 billion so far, this year. Furthermore, there have been growing expectations from regulatory authorities that climate change risks of companies be disclosed to investors[7].

As a sign of a growing trend, ethical fund assets grew 62% in 2015 and with such funds on average out-performing their peers, “investors have realised they can invest in a way that helps rather than harms the planet, without sacrificing returns” says Simon O’Connor from Responsible Investment Association Australasia (RIAA)[8].

With a range of funds now offering ethical and divested options, as health advocates, why wouldn’t you invest in a way that promotes public health, supports the transition to a low carbon economy and contributes to the mitigation of climate change?

Dr Richard Yin

To find out more about fossil fuel free investments, you can start by searching at Superswitch (http://superswitch.org.au/) or contacting a financial adviser specialising in sustainable and fossil-free investments.

In an article about divestment written two years ago in Medical Forum (June 2015), I concluded that “change is possible, it doesn’t have to be business-a -usual”. Will you join me and make the change?

Further Reading: “Investing in Health” report from DEA and Climate and Health Alliance www.dea.org.au/wp-content/uploads/Investing_in_Health_04-16.pdf

References:

[1] http://daraint.org/wp-content/uploads/2012/09/CVM2ndEd-FrontMatter.pdf

[2] http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(16)32124-9/fulltext

[3] http://www.thelancet.com/pdfs/journals/lancet/PIIS0140-6736(17)32464-9.pdf

[4] https://www.dea.org.au/wp-content/uploads/Investing_in_Health_04-16.pdf

[5] https://www.theguardian.com/environment/2017/oct/03/catholic-church-to-make-record-divestment-from-fossil-fuels

[6] https://www.theguardian.com/environment/2017/nov/13/medibank-drops-fossil-fuel-investments-worth-tens-of-millions-of-dollars

[7] http://www.smh.com.au/business/banking-and-finance/apras-summerhayes-says-weight-of-money-now-driving-response-to-climate-change-20171129-gzv31v.html

[8] http://www.afr.com/personal-finance/shares/ethical-investing-comes-of-age-20170518-gw7kuc