Sunday, July 30, 2017

More Investors Will Spurn Fossil Fuels

The hardware will fall into disuse and the money will dry up as fossil fuels wind down. (Image Credit: Paul Heinrich via Wikimedia Commons) Click to Enlarge.
Shares in major oil and gas companies are expected to plunge in value in the next three to five years because of climate change-related financial risks, meaning more investors will spurn fossil fuels.  This is the verdict of British asset managers who control billions of pounds of investments in stock markets.

It could have serious consequences for many thousands of people whose pension funds have invested in these companies, as well as many institutions and charities which rely on dividends for their income, according to a report by the Climate Change Collaboration (CCC), a group of four UK charitable trusts. 

They compiled the report from a survey of thirteen of the world’s largest asset managers, who were asked what effect climate change would have on fossil fuel stocks and what alternative investments were available for customers who wanted to avoid them.

The Collaboration is running a campaign to try to get individuals and large institutions like universities and local authorities to divest from the fossil fuel industry because of the damage oil majors are doing to the climate.

Gauging effect
It carried out the survey to see what effect the campaign is having on the people managing the largest amounts of money invested in the sector.

In order to gauge whether investors had got the message, fund managers were asked whether their clients had asked about fossil fuel-free investments.  Every manager replied that many of their clients had mentioned the issue, and many were concerned about it.

Read more at More Investors Will Spurn Fossil Fuels

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