Fossil Free Investments Pulling Away from Dirty Fuel Funds

April 13, 2015

Newsflash. 21st Century technologies outperforming 19th century technologies. Stay tuned.

Business Green:

Companies and individuals who have divested their stocks and bonds in fossil fuel companies have outperformed those which remain wedded to coal, oil and gas markets over the past five years, according to new analysis by stock market index company MSCI.

MSCI’s ACWI ex Fossil Fuels Index tracks 23 large and mid-cap stocks that have no interests in the fossil fuel industry. Its performance is measured against MSCI’s wider ACWI Index that includes companies that own oil, gas and coal reserves.

With growing investor interest in the merits and risks of divestment, the index was established as a benchmark for investors who want to eliminate fossil fuel reserves exposure from their investments over concerns these reserves could potentially be stranded in the transition to a low carbon economy.

The top companies in the ex-fossil fuel index include Apple, Microsoft, Johnson & Johnson, Wells Fargo and General Electric.

The analysis shows that since 2010, the ex-fossil fuel indices grew by 169.9 per cent, while the main ACWI index grew 162.21 per cent.

The indices start to significantly diverge in mid-2013, with the trend continuing to the end of March this year, in part highlighting the impact the falling oil price can have on an investment portfolio.

The findings are likely to lend support to the growing divestment movement that has seen universities and philanthropic organisations, such as Stanford University and the Rockefeller Foundation, pledge to cut their ties with carbon intensive energy companies.

The data suggest that a “breakup” in the love affair between investors and fossil fuels could be a smart idea – contrary to the hilariously offkey viral-in-the-wrong-way video posted by fossil fuel promotional groups on Valentine’s Day.


2 Responses to “Fossil Free Investments Pulling Away from Dirty Fuel Funds”

  1. […] is in all of our best interest, humans and all other life forms on Earth, to Companies and individuals who have divested their stocks and bonds in fossil fuel companies have out… and other dirty fuel producing non-renewable processes and invest our insights, energies and […]

  2. Says:

    put me back on mail list

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