In London - Part 2 March 16, 2007 : 5:21 PM

While in London, I also gave a speech to the UK National Association of Pension Funds on the relationship between pension fund investments and the climate crisis. Numerous studies have shown that short-term investing - focused on maximizing returns as measured every three months - is actually a negative force that discourages many large companies that depend on pension fund investment from making the expenditures necessary to switch to cleaner approaches.

Even though capital expenditures for clean energy will generate profit in the long term, they will not see profit in the short term. This is because benefits of reduced dependence on carbon often require 2 -3 years to add up. Pension funds ought to be focused on the long term anyway, because they themselves are long-term investments rather than ones based on quarterly profit.