Divestment is the practice of selling a security or group of securities based on principal. Divesting from the fossil fuel industry (coal, oil, and natural gas) is one strategy that concerned individual and institutional investors are using to help reduce carbon emissions, fight climate change, and create positive environmental impact.
Fossil fuel free investing means more than simply moving your money out of coal, oil, and natural gas producers. After divesting from companies that extract, process, or transport fossil fuels, investors have to determine how to responsibly reinvest those funds. Responsible reinvestment strategies should take the best interests of both the investor and the planet into account.
At Earth Equity Advisors, we are experts in sustainable and ESG investing practices and we follow a strict fossil-fuel free investment policy. We help our clients divest from fossil fuels and reinvest in responsible alternatives. The following information will help you consider the potential impact of divestment and your options when building a fossil fuel free investment portfolio.