First appeared in Advisor Perspectives The recent announcement that, by 2020, New York City will be the first city to divest from fossil fuels for its pension plans –at $189 billion among the largest in the world – sends an unmistakable message that a stronger economy rests on a greener planet. The city’s decision is a significant step forward for those who care deeply about the environmental. At the same time, the news raises important questions for investors about whether they ought to follow suit. For many of us, including wealth managers, pension managers and investment advisors, the question is what does divestment mean? And what does divestment look like at the portfolio level? Where t
Saturday we marched. Again. This time, though, the atmosphere was different. Instead of reacting, the forward momentum of movement building was palpable. Last year, record numbers of us came together in cities across the nation and the world to form the first Women’s March, a powerful protest of everything the Trump administration represents. Women, people of color, immigrants, queer and trans folks all stood together in resistance to a presidency that does not embody our values. This year, the March had a different tone—one of power, action and momentum. Instead of a protest of resistance, this year’s march was also a celebration of the rise of women in leadership, of the strength in our nu
First appeared in Family Wealth Report Should you divest your portfolio of fossil fuel securities? That is the question on the minds of individual and institutional investors this week after New York City moved decisively away from fossil fuels. Mayor Bill de Blasio announced that the city will divest of $5 billion of its $189 billion pension fund now in fossil fuel investments. The city is also suing five major oil companies, stating they have contributed to global warming. This news follows last month’s announcement by New York Governor Andrew Cuomo that the state’s $201 billion pension fund is evaluating whether to divest of fossil fuel companies. Fossil fuel divestment is one of the majo
First appeared on ImpactAlpha Growing risks make coal, oil and even gas a long-term drag on performance. Should you or shouldn’t you divest your portfolio of fossil fuel securities? Fossil fuel divestment is one of the major levers at the disposal of citizens and governments to address climate change and accelerate the transition to a clean economy. For many investors, a key issue is whether divestment is a smart decision in terms of financial performance. From a smart investing perspective, the answer is “yes.” Most recently, the city and state of New York has started to move away from fossil fuels. Mayor Bill De Blasio said the city’s pension fund will divest $5 billion of its $189 billion
I had the privilege of being in Sun Valley Idaho with the Rain Forest Action Network (RAN) last week, and I walked away as inspired as ever about the potential of impact investing to address climate change. The RAN event in the Wood River Valley was a terrific opportunity to highlight the benefits of divesting from fossil fuel holdings and to urge investors to refocus their portfolios on solutions-focused companies—those developing innovative clean technology for the planet. Our panel consisted of Patrick McCully, Climate and Energy Director of RAN and Lisa Cooper of Figure 8 and was moderated by Aimee Christensen of the Sun Valley Institute. It was a lively, wide-ranging conversation. We di
