Abstract
Investors are increasingly aware of climate-related risks. One response has been to divest from fossil companies, which by supplying fossil fuels are responsible for the source of emissions, and are most vulnerable to financial impacts.
What motivates investors to fossil divest? A desire to halt extraction of carbon-dioxide generating fuel reserves, while avoiding fossil company investment risks, which are estimated to lose $34 trillion of revenue from future policy and technology. Differing definitions can confuse those considering this approach. Investors also debate whether engagement is more effective at influencing fossil companies. This article discusses what fossil divestment involves, clarifying some ‘grey areas’.
What motivates investors to fossil divest? A desire to halt extraction of carbon-dioxide generating fuel reserves, while avoiding fossil company investment risks, which are estimated to lose $34 trillion of revenue from future policy and technology. Differing definitions can confuse those considering this approach. Investors also debate whether engagement is more effective at influencing fossil companies. This article discusses what fossil divestment involves, clarifying some ‘grey areas’.
| Original language | English |
|---|---|
| Number of pages | 4 |
| Specialist publication | DISCUS (Discretionary Investment Services Coming Under Scrutiny) platform article |
| Publication status | Published - 27 Jun 2019 |
| Externally published | Yes |
Bibliographical note
Q94UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 13 Climate Action
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- General Environmental Science
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