Climate change and human rights non-governmental organisation (NGO) Fossil Free South Africa (FFSA) launched the latest iteration of its online 'Planet A Investment Guide', in Cape Town, on Wednesday evening. (“Planet A” is a reference to Earth currently being the only world on which humanity can thrive.) The guide was originally launched in 2021, and updated in 2022 and 2023. However, this time, and in parallel, the NGO also launched its new hardcopy 'Planet A Investment Guide Handbook'.

FFSA is focused on the human rights impacts of climate change. The NGO sought to advance its aims by promoting divestment from fossil fuel companies, explained FFSA divestment campaigner Sandrine Mpazayabo. It also sought to expose “greenwashing”, when it occurred.    

Attending the launch were representatives of three major South African asset management companies, who highlighted their climate-conscious investment funds.

Sanlam Investments multi-manager corporate solutions head Preanka Naidoo highlighted their Living Planet Fund. The group has the World Wide Fund for Nature as its partner in this initiative. The aim of this fund is to shift mainstream investments into sustainable investments.

There were, she pointed out, real costs to investing in fossil fuels. So, the fund did not invest in fossil fuel companies. But, while seeking to protect the environment, the fund also sought to provide competitive returns for investors. And the fund had succeeded in providing very competitive returns.

The Efficient Group had created an ESG Fund (ESG standing for environmental, social and governance), some three-and-a-half years ago, pointed out Efficient Wealth financial adviser Traci Porter, who was also speaking on behalf of Efficient Group CEO Diaan Janse van Rensburg. “I’m really proud of the fund we have created,” she said. “We have done so with [the help of] other people.” (A member of the audience interjected during Porter’s address to say that he had been one of the first investors in the ESG fund and that it was the best performing asset in his portfolio.)

The Old Mutual Group had, at the start of 2022, committed itself to the worldwide Net Zero Asset Managers Initiative, emphasised Old Mutual Investment Group Quantitative ESG research head Waleed Hendricks. About 220 global asset managers are participating in it. The initiative supports investments aligned to achieving net zero carbon emissions by 2050.

Regarding its own investment strategy, he reported that the Old Mutual Investment Group had a Global ESG Equity Fund and a local South African ESG Equity Fund. The global fund was aligned with the Paris Climate Agreement. Old Mutual’s active investment funds did not invest in fossil fuel companies or in South African petrochemical group Sasol. However, its passive funds had to follow the market, and so included investments in fossil fuel companies and in Sasol.