The UK recently became the first G7 country to legislate for Net Zero. This is a significant step forward, reaffirming to the world that the UK is serious about tackling climate change.
Yet it also lays bare the scale of the challenge we face.
While we have a target of 2050 based on expert advice on what is possible given the technology we have today, scientists agree that there is a limit to the amount of carbon that can be emitted before irreversible damage is done. We are rapidly running that limit down and the danger is, there is no interest free overdraft when it comes to climate.
In encouraging news, we can get there. The question is which options we prioritise and which we move to the back of the queue. Not all work perfectly now, and not all will work perfectly in the future, but that shouldn’t stop us starting now.
Finding the balance
It is this premise which lies behind much of what we do at Abundance. From the beginning we wanted to enable ordinary people to be part of the solution by linking up the way we each use our money with the world we want to see. Our approach is to balance pragmatism, or what we know works, with innovation, or what might work soon. On top of that is a layer of our own judgment — is this fundamentally good? Sometimes the solution doesn’t fit all three criteria, but the greater good is always clear.
This approach has seen us offer you 39 investments that build a better world, whether that be generating green energy or supporting companies innovating toward a Net Zero world.
In light of the Climate Emergency and a Net Zero target, it seems appropriate to reassess the Abundance view of what we do in terms of our purpose, role and vision.
Until now we have brought you investments that offer something in the spirit of innovation and solutions for a better world. We have always asked ourselves whether a prospective investment really delivers progress towards a better future aligned with our customers’ values. As a result, there are now more than 6,000 people using Abundance to put their money to work to build a better world.
Our feeling now is that thinking about personal impact and personal responsibility alone is not enough. In the West we are responsible for the majority of historical carbon emissions, and thus must shoulder much of the responsibility for the effects of climate change. Should we not, therefore, stand up and acknowledge the need for us to do more rather than ‘enough’? It is not enough for us to do good things so that we can feel good about ourselves. It isn’t good enough for us to invest so that we can feel less guilty about our impact on the world. It is not enough for the UK alone to decarbonise.
We must all do more
We have a moral imperative to do all we can to achieve Net Zero not just for ourselves as a single nation but as a leading part of a global society too. For some that will mean investing according to our capability, not just our perceived share of responsibility. For others it will mean supporting technologies or solutions that bridge towards the goal that in normal situations we might disagree with. The perfect should not be the enemy of the good in our collective effort to drive us towards our goal.
We must come together and support one another because it isn’t the case that some will win, some will lose if we fail. It is the case that we will lose most of what we love in the natural world, we may lose political and social stability, food security, and more.
If it sounds daunting, that is because it is a real challenge. But there is hope.
Nations and individuals have pulled together before and will do so again. In times like these we must focus on only the things that are most important. Right now that is doing everything in our power to limit climate change by accelerating the transition to Net Zero.
For Abundance that means thinking hard about solutions we need to support beyond ‘pure green’ to achieve Net Zero for the UK and contributing to the global goal too. As part of this, we asked for your views on how we get there through our own actions and by changing our systems (energy, transport, etc.). The results were fascinating; we saw that there was a clear limit to what we feel we can achieve as individuals, and acceptance of the roundabout journey we need to take to achieve Net Zero.
We will continue to bring you every investment we can that makes a positive difference. Our investors recently refinanced wind turbines on farms in the north of England with E2 Energy, which enables the owner to invest in more green energy capacity. Meanwhile Pax Apartments is still open and finances the completion of new social housing that’s well insulated and containing appliances rated to the highest EU standards. We expect the range to grow as we tackle every aspect of the transition. We hope in return that you will join us in giving the climate fight all we’ve got within your capability. Together we can change the future for the better.
Risk warning
As with any investment product there are risks. Part or all of your original invested capital may be at risk and any return on your investment depends on the success of the project invested in. You should be prepared to hold Abundance investments for their full term and investments may not be readily realisable. Estimated rates of return can be variable and estimates are no guarantee of actual return. Specific risks will apply in relation to each product. Consider all risks before investing and read the Offer Document for each investment.
