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

There are two main reasons why people decide to divest from fossil fuels: values alignment and financial risk reduction.

With the rise of carbon dioxide in the atmosphere, investors want to mitigate the physical and transitional risks of climate change and reduce their carbon footprint.

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.

What is impact investing?

Impact Investing is investing for financial goals and positive environmental or social impact.

Energizing Portfolios Without Fossil Fuels.

At Genus, our fossil free equity funds take a global approach to investing so we have a smaller gap from removing fossil fuels and this allows us to pick from the best of the best companies from around the world. We fill the energy/utilities gap with companies and industries which are highly correlated with energy and utilities in the short run but which we believe will outperform in the long run. These sectors include IT, Financials, Telecom, and Consumer Discretionary.

While past performance is not a guaranteed predictor of future success, the Genus live performance and the results of our historical back tests show that divesting from fossil fuels does not mean sacrificing returns.

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.

Impact Investment Examples

Renewable Energy: First Solar and CoPower

Energy Efficiency: Citirx

Green Buildings: Capitaland

Wayne Wachell, the CEO of Genus Capital

Health Care: Jazz Pharmaceuticals

David Suzuki Foundation

United Church of Canada

Ready to go fossil free?

GET STARTED

Ready to go fossil free?

GET STARTED

I AM A:

Individual investor
Individual investor
Institutional investor
Institutional investor
Financial Advisor
Financial Advisor