Why avoiding fossil fuels may not be the best option

There is growing pressure on investment funds and pension schemes to reduce levels of investment in companies that damage the environment. That would seem to be the driving force behind a move towards investing in those that give more thought to their business practices and strive to cut emissions.

With that in mind, it was surprising to hear recent comments from a government pensions minister who wants to encourage fund managers to avoid selling shares of fossil fuel companies. Guy Opperman suggested that reducing or even scrapping investment in oil and gas companies, or others with a high carbon footprint, would actually be damaging to efforts aimed at tackling climate change.

Quoted in the Financial Times, Opperman stated that he believes it is appropriate to invest in major oil companies and to work with them to reduce emissions and produce clean energy. Simply turning away from them does not help to address problems such as pollution and climate change.

Many ethical investment funds focus exclusively on avoiding companies seen as damaging to the environment, often as a result of pressure from groups focused on the environment.

Opperman’s comments underline the importance of balance in creating an investment portfolio, as well as the need to consider personal requirements for the future when allocating savings, whether you are a pension scheme or an individual. If having a plan tailored to your personal circumstances is important to you, we’ll be happy to help with all your needs when it comes to wealth management in Shropshire


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