“The value of the subprime mortgages was based on a false assumption…. in almost exactly the same way, the value of all of these carbon fuel reserves is based on a similarly absurd assumption.”
Al Gore, Co-Founder of Generation Investment Management LLP 2/14/2012
Mr. Gore makes a solid point and with his Generation Investment Management LLP (GIM) partner, David Blood, goes further by offering a five-point plan on “Sustainable Capitalism” that among other things, suggests that we should do away with quarterly reports. Quarterlies are forcing companies, especially in the renewable energy sector, to make short-term decisions in order to generate instant results for investors rather than allowing low-carbon businesses to grow slowly and succeed on a long-term plan.
Another selfless, pro-environment move by Al Gore and GIM or, could it be a calculated one to increase the value of their portfolio? Mr. Gore and GIM’s investments are knee deep and early into sustainably focused companies. Green or greenbacks: would it be wrong if it were for the both? [Bloomberg and Guardian]
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