Since fall 2012, colleges, churches and cities have been leading robust discussions and moving to divest their holdings in the fossil fuel industry. Inspired by these actions, individual investors also have been moving their money out of coal, oil and gas companies.
Green Century has nearly a decade of experience with fossil fuel free investing and more than two decades of success with shareholder advocacy. This moment in history offers investors a unique opportunity to make a difference on climate change, while saving for their future.
Here are the top five reasons to consider divesting from fossil fuel companies:
1. Get Your Investments in Line with Your Values
Climate change is a serious threat to our society, and burning fossil fuels is a main cause of worsening floods, droughts, and wildfires. Many investors want to keep their investments away from the industry that is principally responsible for causing a changing climate. Divesting allows you to align your beliefs with your investment decisions – an alignment that is being increasingly sought by young and old alike.
2. Reduce Corporate Influence on Energy Policy
Fossil fuel companies have tremendous influence over legislation and regulations, through lobbying in state capitols and Congress. For years, this power has helped thwart progress on the policy solutions to climate change. The fossil fuel divestment campaign is inspired by the successful South African divestment campaign, and aims to exert similar pressure on the companies and institutions standing in the path of needed change.
3. Strengthen the Climate Movement
Climate change is so profound, and the solutions so wide-ranging, that it is often a challenge for people to find a way to make a powerful difference. The divestment strategy is successfully engaging the public. A coordinated and organized climate change network – that includes mayors, church leaders and college students – is essential to passing needed energy policies.
4. May Reduce Exposure to Stranded Carbon Assets
The fossil fuel industry now controls reserves of coal, oil, and gas that – if extracted and burned – will release five times more carbon dioxide than scientists agree is safe.* If governments restrict carbon emissions, companies owning those fossil fuel reserves may not be able to extract and sell them. The reserves may become stranded assets, and investors may then be left with devalued assets. Divesting now could allow investors to reduce their exposure to a possible collapse of the so-called “carbon bubble.”
5. Reinvest in the Solutions
Once divested from fossil fuels, investors have the opportunity to invest in forward-looking climate solutions, like companies specializing in energy efficiency, renewable energy, or other related climate mitigation strategies.
To learn more:
Visit our website or call 1-800-93-GREEN (1-800-934-7336).
The Green Century Balanced Fund is already fully divested from fossil fuel companies and re-invested in green solutions.
The Green Century Equity Fund is divested from coal and major oil companies, and invests in the longest running socially responsible index.
Each investor must decide whether divesting from fossil fuels meets his or her objectives. But every day, more investors are deciding it is the right path forward.
* http://gofossilfree.org/faq/. Scroll down and click “What does ‘Do The Math’ Mean?”
You should carefully consider the Funds’ investment objectives, risks, charges and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds, please click here, email firstname.lastname@example.org or call 1-800-93-GREEN. Please read the Prospectus carefully before investing.
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