Most of the coal reserves on corporates’ balance sheets will never be extracted meaning they are worthless. This has implications for people’s retirement savings, writes John Berry.
Westland’s mayor Bruce Smith recently rallied against proposed restrictions on West Coast coal mining, telling Radio New Zealand “coal is a critical part of how we live every day”.
It’s easy to understand the angst. Coal is to the West Coast what oil is to Taranaki, where the government’s decision to shut down new exploration was met with similar claims.
No one wants uncertainty, but we need to face facts: Coal mining is finished, it’s just a matter of when, and it has implications far beyond Westland. KiwiSaver schemes invest in coal and other fossil fuel companies, and this issue is something people should consider when investing their long-term retirement savings.
See more of John’s article here: https://good.net.nz/article/responsible-investment-with-john-berry