Updated: Dec 10, 2019
Content written by Kimmy Wan
A recent Allianz Life Insurance Co study indicated that 77% of millennial, 64% of Gen Xer and 61% of boomer investors are interested in sustainable and ethical investing. It shows how important it is for major energy companies to commit into investing themes such as climate change and product liability in order to attain new shareholders.
What are the benefits for an energy company to disclose the climate change?
Companies show value by researching climate change assessments, risk metrics, and targets rather than relying on third party research, government contracts or tax advantages to make executive decisions, which can promote shareholder trust and loyalty.
When a company is committed to a self-initiated TCFD (Task Force on Climate-Related Financial Disclosure) with the goal of addressing climate related risks, it creates the ethical framework to meet its fiduciary duties and therefore could avoid unnecessary litigation costs.
Questions an investor should ask when evaluating an energy company and climate change disclosures:
1. What are the steps and initiatives a company are taking to support and educate the general public with information such as chemical safety, health, and demographic risk?
2. What are the company’s plans to finance the carbon pricing programs and pay for the investment costs, given the recent weak earnings forecast?
3. What are the potential government regulations or other hurdles to successfully execute the climate change resilience?
4. What about the other social elements? How is this going to help the labor market? How is this going to boost the stock price?
5. What are the current metrics for the Board of Directors? Does the Board include different genders, ethnicities and areas of expertise to add dynamic collaboration during the executive decision making process?
Truly, with self-disclosed climate change mitigation and adaptation, an energy company can bring real intrinsic value and sustainability for the company and its investors.
Kimmy Wan has more than 20 years of experience in the financial services industry.
Kimmy graduated from California State University, Sacramento in 1998 with a B.S. in Finance and Economics and then obtained her M.B.A. in Finance from the University of Phoenix. She has been a Vice President-Sr. Financial Consultant, Manager of Asia Pacific Relationship Management and a Mutual Fund Operation Analyst for financial corporations. Kimmy is an expert wealth advisor in helping those who are retired as well as those planning for retirement. Kimmy specializes in modern portfolio management, risk management, financial planning, and investment strategic planning. Kimmy has native fluency in Chinese Mandarin and Cantonese.
If you are interested in learning more about the investment process at KW Wealth Management, you can request a free consultation.
There are no warranties implied. All investments are subject to risks, including the possible loss of the money you invest.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Any views or opinions expressed may not reflect those of the firm as a whole. KW Wealth Management reserves the right to amend or change the content at any time and for any reason at its discretion.
KW WEALTH MANAGEMENT (“RIA Firm”) is a registered investment adviser located in Sacramento County California. KW WEALTH MANAGEMENT may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. KW WEALTH MANAGEMENT’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of KW WEALTH MANAGEMENT’s website on the Internet should not be construed by any consumer and/or prospective client as KW WEALTH MANAGEMENT’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by KW WEALTH MANAGEMENT with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of KW WEALTH MANAGEMENT, please contact the state securities regulators for those states in which KW WEALTH MANAGEMENT maintains a registration filing. A copy of KW WEALTH MANAGEMENT’s current written disclosure statement discussing KW WEALTH MANAGEMENT’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from KW WEALTH MANAGEMENT upon written request. KW Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to KW WEALTH MANAGEMENT’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice.
KW Wealth Management maintains a social media presence on Facebook and LinkedIn. However, KW Wealth Management is not affiliated with LinkedIn or Facebook. Please note that review or opinions posted by followers or third parties on KW Wealth’s Facebook and LinkedIn pages do not represent the views of KW Wealth Management or its management. KW Wealth does not control or endorse any content may post to the website.
2019 KW Wealth Management All rights reserved.