It’s Getting Hot in Here: ‘Investment Funds Worth Trillions Are Dropping Fossil Fuel Stocks’
Investors controlling more than $5 trillion in assets have committed to dropping some or all fossil fuel stocks from their portfolios, according to a new report tracking the trend.
The report, released Monday, said the new total was twice the amount measured 15 months ago — a remarkable rise for a movement that began on American college campuses in 2011. Since then, divestment has expanded to the business world and institutional world, and includes large pension funds, insurers, financial institutions and religious organizations. It has also spread around the world, with 688 institutions and nearly 60,000 individuals in 76 countries divesting themselves of shares in at least some kinds of oil, gas and coal companies, according to the report.
“It’s a stunning number,” said Ellen Dorsey, the executive director of the Wallace Global Fund, which has promoted fossil fuel divestment and clean energy investment as part of its philanthropy.
The movement has also received a boost from last year’s Paris climate agreement, which set targets for reducing greenhouse gas emissions to avoid the worst effects of climate change. The push for emissions reductions underscored the potential for the industry to be faced with reserves of fuels that cannot be burned if the targets are to be met — a prospect known as “stranded assets.”
Ms. Dorsey argued that since its beginnings as a moral statement against profiting from companies whose products were exacerbating climate change, more institutions have come to detect vulnerabilities in fossil fuel companies as the world shifts toward renewable sources of energy.
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(Photo: Steven Godfrey; Infographic: Carbon Tracker)
Average people can make a difference on global challenges (Phys.Org)
A beginner’s guide to fossil fuel divestment (The Guardian)
Canadian Medical Association completes divestment from fossil fuels (National Observer)
As fossil fuel diehards take over the White House, the evidence of a fast-moving global energy transition has never been clearer (Jeremy Leggett)
China is going all in on clean energy as the U.S. waffles (Forbes)