Helping to combat climate change

What is the goal of Sustainable and Fossil Fuel Free Investing?

Sustainable Investing can help you align your portfolio with your values and through shareholder engagement it can spur companies to adopt more climate friendly business practices.  Recently, many sustainable investors have focused on fighting climate change through adopting low carbon or fossil fuel free portfolios. Many investors are also part of the movement to convince American universities, foundations, cities and others to divest their portfolios of fossil fuel companies.

What is the investment case for Fossil Fuel Free Investing?

Governments across the globe have agreed that global warming must be kept below 2°C in order to avoid catastrophe.  For this reason experts estimate that between 60-80% of coal, oil and gas reserves of energy companies are ‘unburnable’ if the planet’s temperatures are to remain within safe levels.

Thus, it is argued that some of these reserves may become “stranded assets” of significantly reduced financial value.  Yet, the valuations of traditional energy companies have not become discounted. 

So if the scientific view about global warming proves accurate, fossil fuel free investing could prove to be both a good environmental decision and a good financial decision. No less than the Bank of England Governor Mark Carney stated that the carbon risk faced by "investors...is huge."  (England's Board of Governors is similar to the US Federal Reserve). 

How can I make a difference?

Fighting climate change through the power of one’s portfolio has already had numerous successes.  To give just one example, sustainable investors won commitments from several major multinational food companies to use only palm oil (a widely used ingredient) that is certified as sustainably grown.  These actions will help reduce the clear cutting of rain forests that contributes to climate change. Likewise, the campaign to divest portfolios of fossil fuel companies has had remarkably quick success at universities and among major religious denominations.  

Few people realize that investors can now choose among many broadly diversified fossil fuel free investment options with strong performance histories.  Likewise if you wish to talk to your employer about offering a workplace retirement plan, (401k/403b) that offers a choice of traditional and sustainable investment options, we would be happy to help you. 

Low carbon and sustainable investing offer both the opportunity for comparable investment returns and for a positive environmental impact.