That’s a big picture perspective, presented starkly to attract some attention. Sadly, few people feel the pressure, but that doesn’t mean it’s not the right thing to do. Let’s have a look at some of the detail.
A 2012 article in Rolling Stone , by Bill McKibben of 350.org, galvanised a fossil fuel divestment campaign that spread to at least 250 US colleges and universities. According to a recently published Oxford University report, more than 40 endowments of colleges and universities have divested their holdings in fossil fuel companies. It appears that a visible, vocal expression of the desire to support alternative energy by key stakeholders made a difference to the investment policy of endowments of academic organisations.
But it was not easy. It is shockingly sad that Harvard University, an eminent leader in education, completely discounts ethics from its policy. Harvard President Drew Faust elaborated in a letter on the college’s refusal to divest. “As shareholders, I believe we should favor engagement over withdrawal. … In the case of fossil fuel companies, we should think about how we might use our voice not to ostracize such companies but to encourage them to be a positive force both in meeting society’s long-term energy needs while addressing pressing environmental imperatives.” It is self-serving, immoral, Machiavellian argument since the evidence of energy companies hindering advancement of alternative fuels proves the Harvard policy to be ineffective.
In fact, in a recently published paper, the sustainable investment firm NorthStar Asset Management concluded, “Shareholder efforts to convince fossil fuel firms to expand into alternative energy businesses have proven ineffectual and, as a result some fossil fuel firms have even stopped trying. SRI investors and their fiduciaries also have a responsibility to consider the cost of NOT divesting—on people and the planet, as well as on profit.” This suggests that shareholder engagement is virtually impotent.
The two signals show that individuals changing their investment portfolios is the only way to make a difference. If energy companies face falling equity values as investors divest, they will either change their behaviour and target alternatives, or they will wither.
It’s us or them. Either we divest from fossil fuel companies and save the planet and ourselves, or we continue to support fossil fuel companies, continue to destroy the biosphere and we die.
350.org: Divestment guide
Report by Kachan & Co. and non-profits As You Sow and the Responsible Endowments Coalition: Cleantech Redefined Why the Next Wave of Cleantech Infrastructure, Technology and Services Will Thrive in the 21st Century
Social Funds: Fossil Fuel Divestment only the First Step
Social Funds: As Fossil Fuel Divestment Grows, Cleantech Offers Opportunities for Investors
Social Funds: Engage or Divest?
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