The Green Dream

In today's ruthless world of organised crime, the best criminals aren't foolish enough to steal money out of banks. They wear tailored suits, carry briefcases, and discreetly slip money into banks. 

In ethical investment we often talk about ‘ESG’, ie the Environmental, Social and Governance impacts created by an investment. Environmental and Social impacts are pretty easy to understand and quantify, but the ‘G’ often takes a back seat. How do we assess whether a company is run ethically, and ensure that it acts in the best interest of its stakeholders?

Nathan Lynch’s book, The Lucky Laundry, highlights how unethical practices can have a devastating impact on a company and its shareholders – and where some of Australia’s biggest banks went wrong.

In this discussion with Nathan, we delve deep inside this hidden world to explain how dark money has infected the lives of ordinary people - and tainted Australian democracy. He opens the curtain on the hidden world of financial intelligence, where crooks and spooks play a cat-and-mouse game inside the world's black money markets. Since being published in late 2022, The Lucky Laundry has already been longlisted for a 2022 Walkley Award and earned the Nathan the 2022 Financial Crime Fighter Award.

To borrow from the blurb - Australia is awash with dirty money. It flows through our economy, keeps banks running, powers big business, puts coffee on restaurant tables, seeps into clubs, pubs, sport, the art world and anywhere that value is moved. It infiltrates real estate, costs billions in policing, and takes a terrible toll on Australian lives. What law enforcement agencies might lack in legislation and political will, they make up for with sheer resourcefulness. When they can't get at the masterminds and bigwigs, they have honed tactics that intercept the flow of illicit cash and aim to drive a wedge between crooks and their ill-gotten wealth.

Nathan Lynch is a writer and international speaker who has spent two decades investigating the hidden world of dark money that fuels organised crime, corruption and violent extremism around the globe. His work peels back the layers of complex financial crime schemes. He is certified by the US Department of Justice's elite CCIPS Cybercrime Laboratory and is a program expert with the Financial Services Volunteer Corps, which provides support to developing countries to help them combat the scourges of money laundering and other serious financial crimes. Nathan has trained police, government officials and bankers across Asia and the Middle East on the techniques the world's criminals use to conceal and clean their dirty money.

I hope you enjoy this conversation with Nathan Lynch.

You can purchase Nathan’s book at Amazon – Lucky Laundry. For more information about James Baird and JustInvest Financial Planning see: justinvest and ethicalinvestment.  

We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and emerging. 

Founded in 1998, Impax Asset Management (Impax) is a London based specialist asset manager, investing in the opportunities arising from the transition to a more sustainable global economy. Impax has pioneered sustainable investment and today is one of the largest investment managers dedicated to this area. Impax seeks to invest in higher quality companies with strong business models and governance that demonstrate sound management of risk whilst being able to adapt intelligently to changing conditions (See Video link: The Next Economy – The Sustainable Economy).   

In this interview I discuss Impax’s Sustainable Leaders Fund with Sinéad Rafferty, Senior Investment Specialist at Fidante Partners. In addition to writing market insights and thought leadership, Sinéad presents to advisers and clients across various investment strategies and asset classes. She has 18 years’ experience in the investment management industry across equities, fixed income, alternative assets and derivatives and also worked as a futures and options trader for a number of years.  She has a Bachelor of Commerce, Masters in Finance and is a CFA Charterholder.

 I hope you enjoy this conversation with Sinéad Rafferty of Impax. 

You can check out Impax at https://impaxam.com.

For more information about James Baird and JustInvest Financial Planning see: justinvest and ethicalinvestment.  

We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and emerging. 

In Ethical Investment Week 2022 we are highlighting the important work that is being done behind the scenes to create positive impact and improve corporate behaviour. So in this episode I am talking to Alex Hillman - a long term client and ethical investor, who works at ACCR. The Australasian Centre for Corporate Responsibility are a philanthropically funded shareholder activist group. Self described as a Corporate Watchdog, they believe that limiting global warming to well below 2°C is in the interests of shareholders. Their mission is to deliver changes to the strategies of major listed companies, in Australia and globally, to decrease absolute, real world emissions, in line with the best available science. They do this through research and shareholder advocacy.

In this discussion with Alex, we talk about Woodside, Santos, Origin, BHP and AGL, and also how investors can get involved in making a difference with shareholder activism. 

Alex has spent over a decade working in oil and gas, including five years as Woodside's climate change advisor. This has given him an understanding of the energy transition, LNG business models and technology, asset and company forecasting, climate policy, and climate reporting. Since starting work with ACCR, he has developed a keen interest in how climate change should be included in financial statements.

I hope you enjoy this special Ethical Investment Week 2022 discussion with Alex Hillman of ACCR . 

We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and emerging. 

 For more information about James Baird and JustInvest Financial Planning see: justinvest and ethicalinvestment.  
 
You can check out ACCR here:

ACCR: https://www.accr.org.au/

ACCR’s Shareholder Hub: https://hub.accr.org.au/

AGL's Loy Yang Mine Closure: https://www.accr.org.au/news/agl-finally-reads-the-room-brings-forward-loy-yang-closure-by-10-years/

SMH Business Article - Woodside: https://www.smh.com.au/business/the-economy/ex-woodside-insider-rejects-gas-industry-s-clean-fuel-net-zero-claims-20220211-p59voq.html

What are cave dwelling Troglodytes? Is it a coincidence that places of cultural significance often seem to be in resource rich areas, for example the planned Yeelirrie Uranium mine? Why should your Financial Adviser be aware of these issues? Join us for this special Ethical Investment Week 2022 interview with Kado Muir.  

 It’s a year since my last podcast discussion with Kado, and a lot has happened in that time. In response to the Juukan Gorge incident, the First Nations Heritage Protection Alliance was formed. In late 2021, Kado helped produce a Toolkit for Investors, designed to contribute to the protection of First Nations cultural heritage which is unique to this country and part of the common legacy of all Australians. Also, since Juukan Gorge, progress has been made in other areas - such as the Taskforce on Nature Based Financial Disclosure. In short, there’s a lot happening which will assist both cultural heritage and biodiversity. Kado and I discuss this progress, along with exploring what companies can do to effectively engage with Aboriginal culture. 

 I hope you enjoy this discussion with Kado Muir.

We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and future. 

 Links:

Its-not-worth-wiping-out-a-species-for-the-yeelirrie-uranium-mine

Traditional-owners-lose-their-fight-stop-uranium-mine-wa

Mourning-an-aboriginal-death

What-are-the-seven-sisters-songlines

Damian Cottier,  Portfolio Manager of the Perennial Better Future Trust (IMPQ),  says that Sustainable Investing is about more than just avoiding ‘Sin’ stocks. It’s about exploring what truly constitutes a truly sustainable investment and ensuring there is a strong alignment between profit and purpose.

It’s also about allowing investors access to the transition to a more sustainable and better future. A case study that we talk about is Calix, an industrial solutions company dedicated to solving global sustainability challenges. Their projects include separating carbon dioxide in the lime and cement production process (an industry responsible for around 9% of global greenhouse gas emissions), as well as partnering with Australian companies – for example working with Pilbara Minerals on the electrification of the lithium refining process.  

Damian joined Perennial in 2002 and he has accumulated considerable experience during this time as a senior analyst in small, mid and larger cap stocks. Prior to joining Perennial, Damian worked as a lawyer in Sydney and Hong Kong in corporate law, mainly dealing with governance issues and mergers and acquisitions. He has law and commerce degrees from the University of NSW.

I hope you enjoy this discussion with Damian Cottier of the Perennial Better Future Trust. 

We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and emerging. 

You can check out the Better Future Trust at https://einvest.com.au/impq. For more information about James Baird and JustInvest Financial Planning see: justinvest and ethicalinvestment.  
 
 

WHEB Asset Management is not really a household name here in Australia, and nor are many of the companies that they invest in. Yet for many years, the WHEB team has made it their mission to invest with a focus on creating positive impact, which they have done successfully. Their 2021 impact report has just been released (WHEB-Final-Impact-Report-2021) and I would encourage you to check it out because it really leads the market in demonstrating the positive impact created by the fund, and importantly also mentions some of the areas where the outcomes aren’t yet perfect. It’s this transparency that makes WHEB stand out as a Fund Manager dedicated to ethical and sustainable investing.

 Victoria MacLean is an Associate Fund Manager who works with WHEB’s team to generate investment ideas, research opportunities, and make stock recommendations based on in-depth analysis of companies and markets. Prior to joining WHEB, Victoria worked at Aberdeen Standard Investments (ASI) for over 10 years, with her last role as Investment Director. Victoria is a CFA Charterholder and has a Master’s degree in Public Administration from the London School of Economics, and a degree in Law from the University of Edinburgh. Victoria also serves as a co-chair of the CFA Special Interest Group for Impact Investing, participated in ASI’s diversity network, and was involved in numerous young professional & women’s initiatives in finance.  

I hope you enjoy this discussion with Victoria MacLean of WHEB Asset Management.   

 We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and emerging. 

You can find WHEB at  pengana.com/our-funds/wheb and www.whebgroup.com. For more information about James Baird and JustInvest Financial Planning see: justinvest and ethicalinvestment.  
 
 

PIMCO (Pacific Investment Management Company, LLC) is one of the largest fund managers in the world, managing more than $2 trillion (USD) in assets for investors and focusing on active fixed income management. In this interview I discuss PIMCO’s ESG Global Bond fund with Tina Adatia, executive vice president and product strategist in PIMCO’s London office. 

Previously, Tina was an account manager focusing on the Middle East and North Africa region.  She joined PIMCO in 2004, has 17 years of investment experience and holds an undergraduate degree in economics and actuarial science from the University of Southampton.

 The global bond market is larger than equity markets in size, so it is a crucial area for ethical investors seeking positive impact. Described as a pioneer in developing the green bond market globally, PIMCO’s size and scale puts them in a position to be able to lead the industry and drive positive change. In this discussion we talk about the ESG Global Bond fund’s focus on financing positive projects and investing in climate leaders - including reducing carbon emissions, better treatment of workers, and provision of basic services in developing countries. The fund’s carbon intensity is 72% lower than the index - in real world terms, this is equivalent to taking over a million cars off the road for a year. 

 I hope you enjoy this discussion with Tina Adatia of PIMCO.   

 We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and future. 

You can check out PIMCO at www.pimco.com.au/en-au. For more information about James Baird and JustInvest Financial Planning see: justinvest and ethicalinvestment.  
 
Disclaimer:

All $ amounts referenced are in USD and source citations are PIMCO unless stated otherwise.  

 ADDITIONAL INFORMATION

This material may contain additional information, not explicit in the prospectus, on how the Fund or strategy is currently managed.  Such information is current as at the date of the presentation and may be subject to change without notice.

DATA

Data has been provided for illustrative purposes and are not indicative of the past or future performance of any PIMCO product. Charts may not be to scale and users should take this into consideration when conducting analysis.

ESG

 Socially responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized, or judgment exercised, by PIMCO will reflect the beliefs or values of any one particular investor.  Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and PIMCO is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices.  Socially responsible norms differ by region.  There is no assurance that the socially responsible investing strategy and techniques employed will be successful.  Past performance is not a guarantee or reliable indicator of future results.

Disclaimers continued: www.justinvest.net.au/esg-global-bonds-pimco-disclaimers

In this episode I interview the author of a book called ‘The Rich Greenie, financial strategies for living well while saving the planet’. Stuart Barry is the owner and Senior Adviser at Tas Ethical, a Hobart firm which is part of our Ethical Investment Advisers licensee group. 

Stuart has almost 40 years experience in the industry, is a Certified Financial Planner and holds a Masters of Business Administration and Bachelor of Business. He has actual hands-on experience in the complexities of the global financial markets, having worked in Hong Kong and South Korea for investment firms, as well as here in Australia. Stuart was a co-founder of the Ethical Advisers Co-op back in 2008, and was fundamental in establishing ‘Leaf Ratings’ - Australia’s first ethical super fund ratings system for consumers, which was the subject of our last episode.

We talk about two of my favourite topics – work/life balance and travel (which is ironic as I was at home with Covid as I recorded this). Stuart has a busy family life (he is a father of 4), and as well as managing Tas Ethical, he still finds the time to volunteer for a range of organisations. His career has involved taking a year off twice, plus taking many extended travel breaks, including cycling from Canada to Mexico, backpacking in South America, trekking in Nepal, and much more. 

We also talk about The Rich Greenie, and unleashing your power as a consumer – a power that most people are unaware they have, but one that is capable of creating panic in the investment community…

I hope you enjoy this discussion with Stuart Barry of Tas Ethical!  

We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and future. 

 You can check out The Rich Greenie at richgreenie.com. For more information about Stuart and Ethical Investment Advisers see: ethicalinvestment. For James Baird and JustInvest Financial Planning see justinvest.  
 
 

Have you ever wondered about super and investment funds that claim to be ethical or sustainable, but you suspect they might not be true to label?

In today’s episode I talk with Chris Lang about Leaf Ratings, which aim to eradicate green (& ‘rainbow') washing! You can find the web page at www.leafratings.org. 

Leaf Ratings are based on surveys done by Financial Advisers in the Ethical Advisers Co-Operative, and they aim to rate a fund in terms of its suitability for an average ethical investor. Each super and investment fund gets a rating out of 5, with a 2 page pdf attached - which you can click on to access the fund overview, ethical concerns and good points of each fund. The rating only considers the ethics of each fund and does not include any analysis of fees, performance or financial suitability. 

So who better to talk to about these ratings than Chris Lang, who is the Lead coordinator of the Co-op’s Leaf-Ratings working group. Chris is an Adviser with Ethical Choice in Hobart, and is part of our Ethical Investment Advisers team. Chris graduated in 2012 with a Bachelor’s degree in Financial Planning, with distinction. He was accepted into a highly competitive national graduate program, and has worked as an adviser in Tasmania since.

 I hope you enjoy this discussion and encourage you to check out www.leafratings.org if you haven’t already.

We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and future. 

 For more information about James Baird, JustInvest Financial Planning and Ethical Investment Advisers  see: justinvest and ethicalinvestment.  

In this discussion with Greg Liddell,  Director of Responsible Investments at BetaShares, we talk about the active management of passive funds that is going on behind the scenes by the BetaShares team. The sustainability focused Exchange Traded Funds (ETF's) that we focus on in this interview aren't actively traded, but are run like index funds, with an ethical overlay. 

However for Greg & the BetaShares Responsible Investment Committee, they actively deal with a range of issues relating to the companies held in these portfolios, and will engage with those companies via dialogue and voting to make their voice heard. For example we discuss General Insurers and the way they deal with extreme weather events such as the recent floods on the east coast, controversy at video game manufacturer Activision Blizzard, and a range of other issues such as mining cobalt in the Congo, Board diversity, animal welfare and reducing emissions...not to mention why they don't currently hold Tesla!  

I hope you enjoy this discussion with Greg Liddell of BetaShares.   

You can check out BetaShares at www.betashares.com.au.  For more information about James Baird and JustInvest Financial Planning see: justinvest and ethicalinvestment.  
 
We wish to acknowledge the traditional custodians of the land we recorded on, the Wardandi Noongar people. We pay our respects to them and their culture; and to elders past, present and future.