What is Divesting?

Divesting is the elimination of investment assets, including stocks, bonds and funds. You can divest from any industry or region. People typically consider divestment when companies they are invested in no longer align with their ethics, morals or values.

What is Divesting?

Divesting is the elimination of investment assets, including stocks, bonds and funds. You can divest from any industry or region. People typically consider divestment when companies they are invested in no longer align with their ethics, morals or values.

The fossil fuel divestment movement

Since 2012, the fossil fuel divest movement has grown from its college campus roots into a global movement. The movement encourages people and organizations to divest their holdings from companies directly involved in extracting fossil fuels, and in turn, invest in cleantech innovation, with the goal of accelerating the adoption of renewable energy around the world in an attempt to reduce climate change.

The fossil fuel divestment movement

Since 2012, the fossil fuel divest movement has grown from its college campus roots into a global movement. The movement encourages people and organizations to divest their holdings from companies directly involved in extracting fossil fuels, and in turn, invest in cleantech innovation, with the goal of accelerating the adoption of renewable energy around the world in an attempt to reduce climate change.

Why are People Divesting?

When you divest from fossil fuels, you’re joining one of the most critical progressive movements of our time. You’re also aligning your investments with your values, reducing your exposure to climate risks, and joining a growing movement championing the transition to a clean energy economy and a healthier planet.

Genus Capital’s Hand in the Fossil Free Movement

As a firm, Genus is dedicated to creating innovative solutions that better meet changing client needs.

 

In recent years, our socially responsible investment clients became increasingly concerned about climate change and financing fossil fuel companies. To ensure a better fit with our clients’ values, Genus began divesting from oil sand companies across its Socially Responsible Fund Family in 2011.

 

Then, in our biggest and boldest evolution yet, we created Genus Fossil Free in 2013 by removing all companies directly involved in extracting, processing and transporting oil, gas and coal.

In three years we successfully divested $225 million from fossil fuels, empowering our investors to shift their investments into renewable energy and other funds that better aligned with their values, while delivering returns that beat markets.

Why should you divest?

In addition to aligning your investments with your social and environmental values, divestment can make good financial sense for your portfolio. Over the long term, as the effects of climate change become more apparent, and as more and more governments adopt policies to limit carbon pollution, the carbon resources that fossil fuel companies currently count as assets could shift to liabilities.

 

Many analysts expect fossil fuel investments to underperform in the future. To meet all global carbon reduction commitments, significant fossil fuel reserves may not be burnable, resulting in the stranding of these assets. By divesting, people are reducing the ‘stranded asset’ investment risk from their portfolio.

 

The London School of Economics and the Aperio Group, report that fossil fuel companies may be overvalued by as much as 60 per cent. Financial analysts liken this to a “carbon bubble,” which may burst, much like a housing bubble.

 

Divestment now could protect your assets in the future. But what to do with the money you divest from the fossil fuel companies? Answer: Reinvest in companies leading the way to a clean energy future.

Who has Divested from Fossil Fuels?

By 2015, $2.6 trillion in assets had been divested from fossil fuels as cities, foundations, churches, universities and individuals divested from fossil fuels. This includes:

The Bill and Melinda Gates Foundation

The City of San Francisco

The City of Seattle

University of Massachusetts

Rockefeller Family Fund

Canadian Medical Association

David Suzuki Foundation

United Church of Canada

Wayne Wachell, the CEO of Genus Capital

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