A new social media platform – The Vital Few - allows people to take back control of their future and make sure their pension funds are investing in ways that help tackle climate change.

1. The
Climate
Institute
The Accidental Investor
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2. The Accidental Investor
Taking back control of your future
September 2012
“In what has been described as the democratisation of global capital, the largest
pool of available investment capital is the around $60 trillion supposedly
managed for the long term by the world’s retirement, insurance and sovereign
wealth funds...Shifting even a small percentage of these funds can make a
significant impact in tackling climate change and - as proper long term risk
management - requires no legislative change.”
John Connor, CEO of The Climate Institute
A new social media platform – The Vital Few - allows people to take back control of their
future and make sure their pension funds are investing in ways that help tackle climate
change.
www.areyouthevitalfew.org
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3. Background
The Vital Few is an engaging new social media platform, managed by the Asset Owners
Disclosure Project, that empowers millions of retirement fund members to help redirect
their savings from high-carbon, high-risk investments to ones that can help secure a
sustainable and prosperous low carbon future and ensure safe member returns.
The Asset Owners Disclosure Project (AODP) is an independent global not-for-profit
organisation whose objective is to protect members' retirement savings from the risks
posed by climate change.
The AODP was originally developed in 2008 as an initiative of The Climate Institute and
while it is now a separate entity, the two maintain a close working relationship.
For more information on AODP visit…
http://www.climateinstitute.org.au/asset-owners-disclosure-project.html
or http://www.aodproject.net/
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4. The Issue
Maybe you reduce, reuse and recycle. Maybe you’re into using renewables, buying
local, and drinking fair-trade. Whatever the case, one thing’s for sure, you’re aware of
how you’re spending your take-home income, you’re spending it the way you want to.
But are you aware of how your pension contribution is being spent on your behalf?
Did you know…
Over 55% of your mandatory pension contribution is invested in high-risk, high-carbon
assets with less than 2% being invested in low-carbon assets.
You may be accidentally investing your money in things that are out of line with your
own values, like dangerous high-carbon industries. Not only does this jeopardise the
environment but it also places your own personal finances under significant threat.
By becoming one of The Vital Few you can take back
control of your future and start to invest with intent.
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5. The Cause
Nearly $60 trillion is tied up in
pension funds globally. That’s the
single largest consolidation of
money found anywhere in the
world.
So when it comes to solving the greatest challenge of our generation - reducing our reliance on fossil
fuels to safeguard our environmental and economic future - the pension pot of wealth must be called
into action.
Remember it’s your money. Pension fund managers are simply custodians acting
on your behalf.
Climate change is the most high-risk, high-certainty event that will ever impact global investment.
Pension funds worldwide are largely exposed and ill-prepared for the predicted rapid re-pricing of
carbon which will guarantee things are no longer worth what they once were. The casualties of their
short-sightedness will be your financial nest egg for the future.
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6. What A Few Can Do
“Never doubt that a small group of Send a letter through The Vital Few
thoughtful, committed citizens can change network and your concerns will be
the world. Indeed, it’s the only thing that directed straight to the top of the
ever has.” investment chain.
Margaret Mead, American cultural anthropologist
Pension funds are legally bound to
answer even just 1 letter from a
member. If 1 then 10 then 100 then
1,000 of us send just 1 letter each, it
will pile on the pressure and
effectively force disclosure of
pension funds’ damaging investment
practices.
By asking them to hedge climate risk by increasing low-carbon investment from less than
2% to 5%, this will redirect billions of investment dollars and create a tipping point
ushering in the low-carbon economy.
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7. Taking Action
You can get involved as part of The Vital Few in a number of ways:
1. Visit www.areyouthevitalfew.org
2. Choose one of the short interactive experiences in the action bar at the top of your
screen. Make the selections that represent you to personalise a letter and reflect
your values, vision and concerns.
3. Join The Vital Few in a few quick steps and become part of a collective of
inspiring, like-minded individuals who are courageously rewriting the future.
4. With one click, load your slingshot and send your letter straight to the top and ask
the decision makers in your pension fund to disclose how much of your money they
are currently investing in high-risk, high-carbon assets and what they are doing to
hedge climate risk on your behalf.
5. Share The Vital Few story with your friends and family. Blog and tweet about the
problem or post your unique Vital Few member badge on your Facebook page.
6. Visit The Vital Few Community and have some fun telling us what you want for your
future.
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8. Taking Action
Tell your pension or superannuation fund what's important to you. Craft your personalised
letter and send it straight to the top.
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9. What Happens Next
One of the greatest benefits of being part of The Vital Few is that you get direct access to
the decision makers in your pension fund. However, they may respond in a number of
ways from superficial and elusive to legitimate and committed.
Here’s what to expect. Your fund will either be a:
Fixated on fossil Adopting the herd Cleverly using green While politely Fully engaged with
fuels, this fund is so mentality of wash acknowledging the evolving their investment
besotted by the allure resistance, this techniques, such as importance of climate process to incorporate
of short-term returns fund is sitting on their commitment to risk and recognizing climate risk this fund
they deliberately the fence waiting ESG (Environmental, your serious personal is seeking new and
avoid any dialogue for another fund to Social & Governance) concerns this fund innovative ways to gain
about the danger of make the first this fund is distracting conveniently fails to high returns, without
high-risk, high-carbon move. your attention from take any compromising future
investments. the real material responsibility prosperity, both financial
issues. for the solution. and environmental.
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10. What People Are Saying
“With unprecedented extreme
“Sitting atop the wealth chain, the pension
weather events, historic melting of
industry has continued its fast and furious
the arctic ice cap and radically
spending spree on high-carbon, high-risk
inadequate action from our
investments with little accountability for their
governments, this new social
impact on the long-term financial security of
media platform opens up a new
both individuals and the broader economy.
front for millions of fund
The Vital Few’ platform can be used by
members.”
anybody signing up as a free member to
exercise their legal rights in forcing their Kelly Rigg, Executive Director of the
funds to demonstrate how they are Global Campaign for Climate Action
performing their fiduciary duty in managing
big systemic risks such as climate change.”
Julian Poulter, Executive Director of the Asset
Owner Disclosure Project (AODP) & Business
Director of The Climate Institute “Through mandatory retirement fund
contributions and other savings, millions of
workers have become accidental investors
and participants in short term and
unsustainable investment decisions with
global impact. This vital tool is part of a
profound change in the operation of global
capital…These citizen investors can now
collaborate to help make the kind of
sustainable economy we need for a more
prosperous future."
Sharan Burrow, General Secretary of the
International Trade Union Coalition
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11. What People Are Saying
“Asset owners like the pension and super
funds appear to have learnt nothing from
the mismanagement of sub-prime
mortgages which triggered the Global
Financial Crisis. The Vital Few is an online
community where even a few pension
members can lead real change. The
pension industry is failing its members, and "The bedrock principle behind
it may only take a vital few to steer it back capitalism is that it works when owners
on course.” look after their property…The Vital Few
“This is clearly a milestone in initiative, by starting with the issue of
Dr John Hewson, AODP Chair & former leader of
online movements. Never before has climate risk, is a milestone in helping
the Liberal Party of Australia
the online movement been able to restore genuine ownership to
align the financial interests capitalism.“
of so many people with the interests
Stephen Davis, Senior Fellow at the Harvard
of global sustainability and
Law School Program on Corporate
prosperity.” Governance/Brookings Institution
& Co-author of The New Capitalists: How
James Slezak, Partner, Purpose.Com Citizen Investors are reshaping the Corporate
(founders of GetUp and Avaaz) partner Agenda
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12. Be Part Of The Vital Few
www.areyouthevitalfew.org.au
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