INVESTMENTS & DIVESTMENTS

INVESTMENTS & DIVESTMENTS

There are few forces as mighty as the power of the purse, and just as capital drives the actions of people and the movement of things, so can its absence. Investment can stand up a transnational corporation; a boycott, at least in theory, can take it down.

This axiom played out on a big stage in the spring of 2020 when JP Morgan Chase, which lent more than $195 billion to gas and oil companies over the previous three years, faced a revolt at its annual shareholder meeting. At the virtual meeting, 49.6 percent of shareholders voted to require Chase to produce a plan to align its business with the goals of the 2015 Paris Agreement to hold an increase in global average temperature to well below 2 degrees Celsius above pre-industrial levels, and to pursue efforts to limit the rise to 1.5 degrees.

Shareholders also pressured the bank to remove from its board Lee Raymond, the former chief executive officer of ExxonMobil and a renowned climate change denier. That action followed sustained pressure by activists including Bill McKibben, who wrote in an April 2020 New York Times op-ed that Raymond led ExxonMobil while it “helped pioneer corporate efforts to create doubt about climate change” even when its own scientists knew the truth and the corporation was moving to protect its infrastructure from sea-level rise.

The year 2020 began with BlackRock, the world’s largest money manager, announcing a dramatic shift toward prioritizing climate change in its investment strategies. It also began with the mayors of two world capitals — Bill de Blasio of New York and Sadiq Khan of London — urging their counterparts around the world to join them in divesting their municipalities’ pension funds from fossil fuel holdings. They presented “Divesting from Fossil Fuels, Investing in Our Future: A Toolkit for Cities,” a guide to divesting while increasing sustainable investments produced by C40, a network of megacities committed to addressing climate change.

On campuses around the world, students are demanding that their university divest from fossil fuels. Divest Ed offers training and strategy for student-led divestment campaigns. As of May, 2020, GoFossilFree.org listed a total of 1,195 institutions and over 58,000 individuals representing more than $14 trillion in assets, which have begun or committed to a divestment from fossil fuels. 30% of those commitments came from faith-based organizations and 15% from educational institutions including Stanford, the University of California, the University of Hawaii, Georgetown, and most recently University of Vermont, to name a few in the United States.

Wall Street has collectively gotten the message, and today’s investors, millennials very much included, can choose from a number of mutual funds that emphasize sectors from low-carbon electricity and energy efficiency to copper, which is essential for wind- and solar-power infrastructure as well as electric-vehicle-charging stations.

What is fossil fuel divestment and why does it matter? | Keep it in the ground

CURRENT NEWS

KEY RESOURCES

Integrating Climate and Net-Zero Solutions Into Your Investment Process

06/29/22
Climate data and financial modeling capabilities across multiple asset classes Analytical tools for constructing, benchmarking and managing climate-aligned portfolios, setting net-zero targets and assessing impacts on valuations Portfolio- and enterprise-level monitoring, management and reporting of…

Our Impact

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These incredible results are made possible with help from you. Join us in our efforts to protect our communities, climate and environment from the risks associated with outdated, climate-polluting energy. We are strongest when we…

The Catalyst Program

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Many clean energy innovations available today – like wind, solar, and lithium-ion batteries – are starting to compete with the emissions-intensive technologies they were designed to replace. After decades of research, development, demonstration, and deployment,…

Find out if you’re invested in 200 of the largest owners of carbon reserves

07/07/21
The Carbon Underground 200™, compiled and maintained by FFI Solutions (formerly Fossil Free Indexes℠), identifies the top 100 coal and the top 100 oil and gas publicly-traded reserve holders globally, ranked by the potential carbon…

Implementation of the Fossil Fuel Investment Principles

07/06/21
Following the adoption of the Fossil Fuel Investment Principles by the Yale Board of Trustee in April 2021, the ACIR began its task of applying the Principles and recommending to the CCIR fossil fuel producers…

Global asset owners setting and reporting on ambitious interim targets for net-zero emissions by 2050

05/26/21
Founded in September 2019 at the UN Secretary General’s Climate Action Summit by Allianz, Caisse des Dépôts, La Caisse de dépôt et placement du Québec (CDPQ), Folksam Group, PensionDanmark, and SwissRe, the Net-Zero Asset Owner…

BANK with your values!

05/16/21
Decarbonizing our financial sector is critical for climate progress. The five largest US consumer banks—Bank of America, Citi, JP Morgan Chase, Wells Fargo, and TD Bank—funnel hundreds of billions of dollars annually into the oil,…

Global Investors Driving Business Transition

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Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global…

Disclose, Divest, Reinvest!

05/06/20
Harvard’s current pledge is radically insufficient. Students, faculty, and alumni lay out seven steps the university should take to align its endowment with a livable future.

Let’s Fund

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Let’s Fund helps you discover and fund breakthrough research, policy and advocacy projects. We use the principles of Effective Altruism to find the projects that we believe will do a lot of good. We do…

Enhancing Women’s Organizations’ Role In, and Access To, Climate Finance

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Through a collaboration with Prospera, the International Network of Women’s Funds, who commissioned this vital work, WEDO researched and produced this report and accompanying summary documents on engaging women’s organizations, feminist advocates, and gender-related groups…

Make smart donations

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Last summer, when we discussed how to make your climate change donations count, our reporting suggested that one of the most effective strategies is donating to political campaigns.

Fossil Free: 1000+ Divestment Commitments

01/03/20
See a full list of 1000+ Divestment commitments. Fossil Free is a global project sponsored by 350.org, demanding our local communities and institutions commit to: 1)A fast + just transition to 100% renewable energy for…

Fossil Free: Divestment

12/23/19
A full list of divestment commitments.

DivestInvest

12/23/19
Join the global investor movement accelerating the sustainable energy transition

Encourage Capital

12/13/19
Encourage Capital is a new kind of investment firm that seeks to change the way investment capital is used to solve critical environmental and social problems.

Blue Forest Conservation

12/13/19
Financial Innovation for Sustainable Solutions

RAN – Banking on Climate Change

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This 10th edition of the annual fossil fuel finance report card, greatly expanded in scope, reveals the paths banks have taken in the past three years since the Paris Agreement was adopted, and finds that…

Entelligent – Predictive Analytics for Smart Climate Investing

12/13/19
Entelligent’s Smart Climate Data and Analytics are a “top down” climate scenario analytics platform of formulas, systems and indices that assess the climate risk of an investment portfolio and provide critical analytics at the individual…

Climate Investment Funds (CIF)

04/29/19
The Climate Investment Funds (CIF) is one of the world’s leading climate finance mechanisms. Founded in 2008, it represents one of the first global efforts to invest in a dedicated climate finance. The CIF emerged…

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By David Gelles and Hiroko Tabuchi  Photo: Kieran Dodds for The New York Times   05/27/22  
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People in US and UK face huge financial hit if fossil fuels lose value, study shows

By Damien Carrington  Photo: Martin Meissner , AP   05/26/22  
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Vanguard refuses to end new fossil fuel investments

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Investors reject climate proposals targeting ExxonMobil, Chevron

By Maxine Joselow  Photo: Richard Drew/AP   05/26/22  
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Big Tech is pouring millions into the wrong climate solution at Davos

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3 ways to fix ESG ratings to meet investors’ expectations

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A feud over fossil fuel money

By Manuela Andreoni   05/24/22  
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HSBC suspends head of responsible investing who called climate warnings ‘shrill’

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Global ESG standard-setting gains speed

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The GOP’s New War On Divestment

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Democrats’ climate plan languishes, putting billions in private investment on hold

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Divesting works: Study finds ditching fossil stocks lowers corporate footprints

By Rick Spence   02/09/22  
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Banking on our future

Photo: Ken Cedeno / Greenpeace   01/29/22  
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1 big thing: Wall Street blunts divestment momentum

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Citigroup and BlackRock, two major financial players with far-reaching climate goals, took similar stances this week on divesting from fossil fuel companies. They're against it, at least for now, Andrew writes.

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Energy Ended Up as a Good Bet Last Year. But Now What?

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Global exodus from fossil fuel holdings tops 1,500 institutions

By Hiroko Matsumoto  Photo: Reuters   01/05/22  
More than 1,500 pension funds, universities and other organizations around the world have announced that they will divest from fossil fuel assets, doubling from five years earlier and underscoring the surge in sustainable investing.

Climate Justice Through Divestment

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Big numbers – dollars and institutions – behind divestments from fossil fuels

By Kristen Pope   01/04/22  
The Global Fossil Fuel Divestment Commitments Database, maintained by two nonprofit divestiture advocacy groups, Stand.earth and 350.org, tracks institutions that have pledged to divest from fossil fuels fully, partially, or with regard to certain subsets,…

The EV Strategy at Ford Is Winning Buy-In from Investors

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Check out the best- and worst-performing clean energy funds of 2021

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pwc

Climate tech investment more than triples, but is focused on solutions with just 20% of emission reduction potential: PwC study

12/15/21  
Investment from venture capital and private equity is pouring into climate tech, reaching US$87.5bn over H2 2020 and H1 2021, with in excess of US$60bn coming in the first half of 2021 alone. This represents…

San Diego will stop investing in fossil fuel industry to avoid contradicting city climate goals

By David Garrick   11/30/21  
San Diego will soon join New York, Los Angeles, Pittsburgh and many other cities that no longer invest their financial reserves in the fossil fuel industry because that contradicts municipal efforts to fight climate change.

U.S. will miss electric-vehicle targets without big investments in semiconductor manufacturing

By Jeanne Whalen  Photo: Leah Millis , Reuters   11/29/21  
The United States won’t meet the Biden administration’s goal of widespread electric-vehicle adoption without urgent investment in domestic semiconductor manufacturing, Commerce Secretary Gina Raimondo said.

Report: Energy Storage as a Service Market Size Worth $2.7 Billion by 2028

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With first official ordinance, Mayor Wu divests Boston from fossil fuels

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Mayor Michelle Wu of Boston signed a measure to divest city funds from the fossil fuel industry on Monday, adding Boston to the small number of major US cities that have taken the step to…

WV Treasurer Moore Leads 15-State Coalition to Push Back Against Bank Boycotts of Traditional Energy Industries

11/22/21  
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The Divestment Movement’s Big Month

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Jigar Shah has a new strategy to boost climatetech through DOE loans

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Business Schools Respond to a Flood of Interest in E.S.G.

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Finance Must Combat Climate Change – or Else

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Bill Gates: Funding clean technology is the way to avoid climate disaster

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This Movement Is Taking Money Away From Fossil Fuels, and It’s Working

By Bill McKibben  Photo: Robert Gumpert/Redux   10/26/21  
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The United States remains the world’s most attractive market for renewables investment while India breaks into top five

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Aligning our investments and our values

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The Biden administration proposes reversing Trump-era rules on socially conscious investing.

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Martin J. Walsh, the secretary of labor, said that the department consulted consumer groups, asset managers and others before writing the proposed rule, and that the change was considered necessary because the old one appeared…

Private sector investment in u.S. Offshore wind will soar to $109 billion by 2030

10/12/21  
The Special Initiative on Offshore Wind is an independent project at the University of Delaware’s College of Earth, Ocean and Environment that supports the advancement of offshore wind as part of a comprehensive solution to…

College formally announces plan to divest from fossil fuels

By Taylor Haber   10/08/21  
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Nestlé, Campbell Soup ‘highly exposed’ to climate risks, investor group warns

By Chris Casey  Photo: Scott Olson via Getty Images   09/29/21  
Major food players including Nestlé, Campbell Soup, Nissin Foods, Ajinomoto and Kerry Group ranked among 50 large companies that are "highly exposed" to the physical effects of climate change relative to other businesses in the sectors…