Recently, the Norwegian Government Pension Fund Global, the world’s largest sovereign wealth fund, announced that it would be selling shares of Duke Energy and other coal-burning utilities from it’s portfolio. Why is this important? Because the pension fund is one of Duke’s largest shareholders, holding around 0.76 percent of the company’s outstanding shares.
It is also important because it is one of the first major government investments to decide to divest from fossil fuel companies. Many colleges, institutions and non-profits have been selling their shares recently. 350.org has been a major driver of the divestment movement internationally, including organizing Global Divestment Day on February 13, 2015.
The rationale behind fossil-fuel divestment is multi-fold:
– Investments in fossil-fuels does not align with many people/institution’s values
– To shape public policy/discussion and to limit influence by well-funded energy companies
– Potentially reduce financial risk from liabilities or stranded assets
– To reallocate investments to more sustainable companies
Krull & Company, Asheville’s only socially and environmentally responsible investment management firm has been offering fossil-fuel-free portfolios to clients since 2012. Our Green Sage Sustainability Portfolio has been used as a reinvestment option for individuals and institutions that are divesting from fossil fuels. In addition, we also offer two diversified mutual fund portfolios with no fossil-fuels! Contact us to learn more.