divestment

What Norway’s Big Divestment Decision Means for Fracking, Tar Sands and Global Oil Exploration

Read time: 7 mins
Bergen, Norway

Norway’s sovereign wealth fund — a state-owned investment fund worth approximately a trillion dollars — recently announced it was divesting from oil and gas exploration companies around the world. Not surprisingly, many oil and gas stocks declined following the announcement.

While this is good news for the climate, this was simply a smart business decision. Norway’s sovereign wealth fund, known as the Government Pension Fund Global (GPFG), primarily exists due to Norwegian oil production. And the fund will continue to be a major investor in companies like Exxon.

It appears it’s just cutting its losses on money-losing endeavors like fracking in America, tar sands oil production in Canada, and frontier exploration by UK companies in Africa and South-East Asia.

US Bank Declares End to Oil and Gas Pipeline Loans—Then Quietly Joins $4B Deal with Dakota Access Owner

Read time: 6 mins
US Bank logo

At a shareholder meeting this past spring, U.S. Bank announced it would be the first large American bank to completely stop issuing loans for oil and gas pipeline construction projects.

Environmental groups, indigenous activists, and divestment advocates hailed U.S. Bank's announcement as a triumph.

Yet that triumph — and the bank's commitment — seems less sure with the news that U.S. Bank has entered into a new $4 billion loan deal with the company behind the contentious Dakota Access pipeline (DAPL).

How Divesting of Fossil Fuels Could Help Save the Planet

Read time: 5 mins
Divest from fossil fuel light sign in Madison, Wisconsin, in 2014

By Olaf WeberTruzaar Dordi, and Vasundhara Saravade of the University of Waterloo.

Recently, a number of institutional investors, including Caisse de dépôt et placement du Québec in Canada and Norway’s sovereign wealth fund, announced their intent to reduce their exposure in investments linked to fossil fuels.

The announcements show that investors withdraw their funds to either mitigate financial risks or for ethical reasons. But the question remains whether divestment and divestment announcements have a financial impact on the share price of fossil fuel companies.

Fight Not Over: Dakota Access Protests Continue After Army Corps Announces Pipeline Project Review

Read time: 7 mins
Pipeline protesters outside of TD Bank in Philadelphia.

The day after the Obama administration announced that the Dakota Access pipeline (DAPL) project would be required to undergo additional review, protests against the banks that funded the project continued, with organizers nationwide saying they planned to keep up their resistance.

“We are happy that the Army Corp of Engineers has listened to the voices and actions of millions who have taken a stand against this pipeline,” said Kristin Schwab, who helped organize a Philadelphia protest calling for banks to defund DAPL. “But a delay isn’t enough.”

David Suzuki: Divest from Damage and Invest in a Healthier Future

Read time: 4 mins

If people keep rapidly extracting and burning fossil fuels, there’s no hope of meeting the 2015 Paris Agreement climate change commitments. To ensure a healthy, hopeful future for humanity, governments must stick to their pledge to limit global warming to 1.5 or 2 C above pre-industrial levels by 2050. Many experts agree that to meet that goal, up to 80 per cent of oil, coal and gas reserves must stay in the ground. That makes fossil fuels a bad investment — what analysts call “stranded assets.”

Putting money toward things that benefit humanity, whether investing in clean energy portfolios or implementing energy-saving measures in your home or business, is better for the planet and the bottom line than sinking it into outdated industries that endanger humanity.

Coal Mining's Financial Failures: Two Thirds of World's Production Now Unprofitable

Read time: 5 mins

Sixty-five percent of the world's coal production is unprofitable at today's prices, a new research report by Wood Mackenzie, a commercial intelligence company often cited by investment analysts and the coal industry itself, concluded.

Both major types of coal — the coking coal used for making steel and the thermal coal burned in coal-fired electrical power plants — were included in Wood Mackenzie's analysis. The estimate may be conservative, as the group excluded some costs incurred during mining, and focused primarily on the sharp drop in the price of coal.

Divestment Movement Hits Major Milestone As World Leaders Debate Climate Action In Paris

Read time: 3 mins

More than 500 institutions that manage $3.4 trillion in assets have now committed to divesting holdings in fossil fuels, divestment campaign groups announced today in Paris.

As recently as September 2014, just 181 institutions managing $50 billion in assets had made some sort of divestment commitment.

350.org and Divest-Invest, two of the key groups organizing the divestment movement, announced the new additions to the growing list of divestors this morning in Paris at the UN COP21 climate negotiations.

Worries Build Among Investors Over Oil and Gas Industry’s Exposure to Water and Climate Risks

Read time: 6 mins

When it comes to financial risks surrounding water, there is one industry that, according to a new report, is both among the most exposed to these risks and the least transparent to investors about them: the oil and gas industry.

This year, 1,073 of the world’s largest publicly listed companies faced requests from institutional investors concerned about the companies’ vulnerability to water-related risks that they disclose their plans for adapting and responding to issues like drought or water shortages.

The Divestment Movement Has Unexpectedly Exploded into the Trillions of Dollars and Here’s Why

Read time: 5 mins

At this time last year, building on the momentum generated by Climate Week and the New York People’s Climate March, divestment advocates made an ambitious announcement: a plan to triple the $50 billion in assets individuals and organizations had pledged to divest from fossil fuels by the time of the 2015 Paris UN climate negotiations.

That was an ambitious plan.

But in the year since, according to a new report from Arabella Advisors, the divestment movement exploded in scope and scale increasing fifty-fold, bringing the total combined assets of those divesting to an incredible $2.6 trillion.

It’s safe to say that no one, not even the most optimistic divestment dreamers, could have anticipated this outcome.

So what’s behind the global momentum for divestment?

California Public Pension Funds Lost $5 Billion On Fossil Fuel Investments In One Year

Read time: 3 mins

Two of California’s massive public pension funds lost more than $5 billion on investments in coal, oil and natural gas in just 12 months.

According to a report released by environmental group 350.org, the California Public Employees' Retirement System (CalPERS) lost $3 billion and the California State Teachers’ Retirement System (CalSTRS) lost $2.1 billion from their holdings in the top 200 fossil fuel companies between June 2014 and June of this year.

Combined, the two funds lost a total of $840 million from their stock investments in coal companies alone — one-fourth of the value of their coal holdings.

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