Stuart Kirk, the global head of responsible investing at HSBC Asset Management, said 'who cares if Miami is underwater' during a speech at a conference last Thursday. Opening the speech, Mr Kirk said: 'Climate change is not a risk we need to worry about - heresy!' he continued: 'I feel like it's getting a little bit out of hand, the constant reminder that we are doomed. The constant reminder that in decades it's all over. It's become so hyperbolic that no one knows how to get people's attention any more. 'After 25 years in the finance industry there's always some nutjob telling me about the end of the world.
'But what bothers me about this one, is the amount of work these people make me do, the amount of regulation coming down the pipes, the number of people in my team and at HSBC dealing with financial risks from climate change.' Mr Kirk suggested too many resources were being directed at a problem that is '20 or 30 years down the line'. 'I work at a bank that's being attacked by crypto. We've got regulators in the US trying to stop us. We've got the China problem. 'We've got a housing crisis looming. We've got interest rates going up. 'We've got inflation coming down the pipes and I'm being told to spend time… looking at something that's going to happen in 20 or 30 years. Hence, the proportionality is completely out of whack.'
He added: 'Human beings have been fantastic at adapting to change, adapting to climate emergencies, and we will continue to do so. 'Who cares if Miami is six metres underwater in 100 years? Amsterdam has been six metres underwater for ages and that's a really nice place. 'I don't doubt the science but we do need to adapt.' HSBC says that climate change is one of the most serious emergencies facing the planet, but Mr Kirk suggested it is not a big deal for the high street bank. He explained: 'At a big bank like ours, what do people think the average loan length is? It is six years. What happens to the planet in year seven is actually irrelevant to our loan book. For coal, what happens in year seven is actually irrelevant. Let's get back to making money out of the transition.'
We can't expect much from the banks if this is the type of person HSBC employs as Global Head of Responsible Investing.....
And then he's supported by the Chief Executive of Legal & General.....
Mr Kirk is clearly not a student of geology. If he was, he would realise the difference between the impervious strata beneath Amsterdam and the rather more pervious strata beneath Miami meaning walls and dykes around Miami would not work as the water would just seep under them.
Maybe he should be promoted to Head of Property Asset Management (South Florida region).
I agree there are a lot of financial issues coming up in the future but they may pale if a lot of the climate predictions come true.
Insurers, especially those who are exposed to property risk, should probably know better.
Insurers like Swiss Re have often bought up the dangers of climate change in the past. As reinsurers they are the ultimate last resort in insurance so they have to be mindful of all risks.
A senior HSBC executive who accused central bankers and officials of exaggerating the financial risks of climate change has resigned. Stuart Kirk, the bank's global head of responsible investing, was reportedly suspended in May after he said in a speech: "There's always some nut job telling me about the end of the world." He said on Thursday his comments had made his position "unsustainable". "A cancel culture destroys wealth and progress," he added in a LinkedIn post.
I'm glad to see the nut job who talked about nut jobs gone. While he might have been a very good *Anker he didn't have the intellect to be a sustainability officer.
A lot of companies are already starting to look at how things like rising sea levels or extreme weather might disrupt real estate, insurance, supply chains, and more. Some are even building climate strategies directly into their market entry plans to get ahead and tap into markets where people care about sustainable, long-term thinking.
For a new business, weaving a climate angle into your market entry plan early on could really strengthen the approach.
Last edited by Hawkstrog on 21 Nov 2024, 07:18, edited 1 time in total.
