Fossil fuel divestment

To some, it is a means of aligning investments with core values; to others, it is a tactic for combatting the fossil fuel industry; to others, it is a way to protect portfolios from climate-related financial risk.

[10] Furthermore, according to the US Environmental Protection Agency, Earth's average temperature has risen by 0.78 °C (1.4 °F) over the past century, and is predicted to rise another 1.1 to 6.4 °C (2 to 11.5 °F) over the next hundred years with continued carbon emission rates.

This is the beginning of the kind of model that we need, and the first step is saying these profits are not acceptable and once we collectively say that and believe that and express that in our universities, in our faith institutions, at city council level, then we're one step away from where we need to be, which is polluter pays.This Agreement ... aims to strengthen the global response to the threat of climate change, ... including by ... Holding the increase in the global average temperature to well below 2 °C and ... Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.The Toronto Principle is a fossil fuel divestment strategy, which puts into action the aims set forth at the Paris Agreement in 2015.

Foremost, they argued that "targeted and principled divestment from companies in the fossil fuels industry that meet certain criteria ... should be an important part of the University of Toronto's response to the challenges of climate change.

"[10] In adhering to the Toronto Principle, Franta argues that leading institutions can use their status and power to meaningfully respond to the challenge of climate change, and act based on the goals at the Paris Agreement.

[19] In 2013 a study by HSBC found that between 40% and 60% of the market value of BP, Royal Dutch Shell and other European fossil fuel companies could be wiped out because of stranded assets caused by carbon emission regulation.

[28][29] The report spans the period 2008–2012 and notes that: "for all companies and all years, the economic cost to society of their CO2 emissions was greater than their after‐tax profit, with the single exception of ExxonMobil in 2008.

There is a reasonable chance that society will act to either reduce this societal cost by regulating against fossil fuel use or recover it by imposing carbon prices.

[28]: 2 Similarly, in 2014, financial analyst firm Kepler Cheuvreux projected $28 trillion in lost value for fossil fuel companies under a regulatory scenario that targets 450 parts per million of atmospheric CO2.

[38] In 2021, Harvard University committed to divestment from fossil fuels after facing a legal complaint asserting that its investments violated state laws.

"[46] In early 2021, students at Harvard and Boston College filed complaints with the Massachusetts Attorney General asserting that fossil fuel investments represented a breach of state laws governing fiduciary duty.

[16] One year later, by September 2015, the numbers had grown to 436 institutions and 2,040 individuals across 43 countries, representing $2.6 trillion in assets, of which 56% were based on the commitment of pension funds and 37% of private companies.

[50] By April 2016, already 515 institutions had joined the pledge, of which 27% faith-based groups, 24% foundations, 13% governmental organisations, 13% pension funds and 12% colleges, universities and schools, representing, together with the individual investors, a total of $3.4 trillion in assets.

[55] Tom Stayner, an activist from the EC, stated in the ANU student paper Woroni that: "He took some convincing, but the Vice Chancellor is showing leadership on this urgent issue.

[60] In October 2014, the ANU Council announced that it would divest from seven companies, two of which, Santos and Oil Search, performed poorly in an independent review undertaken by the Centre for Australian Ethical Research.

[60] These attacks, which The Canberra Times editorial described as "verging on hysterical"[62] was joined by members of the cabinet of the Abbott government, with the Treasurer Joe Hockey stating that the ANU Council is "removed from the reality of what is helping to drive the Australian economy and create more employment,"[63] Education Minister Christopher Pyne calling it "bizarre"[64] and Prime Minister Tony Abbott calling it "stupid.

It demonstrates that they are, ultimately, voices speaking with growing eloquence, urgency and authority for one thing: action to address global climate change.

[82] In November 2015, in advance of the UNFCCC COP 21 climate negotiations that resulted in the Paris Agreement, over 100 students risked arrest by staging a non-violent sit-in, surrounding the university president's office for five days and four nights.

[84] In response to the students' publicized plans to hold this sit-in, the university's board of trustees published a letter to the UNFCCC calling for bold climate action.

[103] In October 2014, Divest Harvard organized a three-day fast and public outreach event to call attention to the harms of climate change.

[106] The lawsuit was dismissed by a Massachusetts Superior Court judge, who wrote that "Plaintiffs have brought their advocacy, fervent and articulate and admirable as it is, to a forum that cannot grant the relief they seek.

In January 2015, it was revealed that Harvard had increased its direct investments in fossil fuel companies considerably,[108] and the number of faculty and alumni supporting divestment grew.

[117] In November 2019, at the annual Harvard-Yale football game, over 150 Harvard and Yale students stormed the field at halftime to demand divestment and the immediate cancellation of holdings in Puerto Rican debt, delaying the start of the second half by over 45 minutes.

[118] The event was a joint protest led by Divest Harvard and the Yale Endowment Justice Coalition, and drew extensive coverage from news outlets and on social media, accompanied by the hashtag '#NobodyWins'.

[126] The committee, composed of 13 faculty, staff, and students, was charged with engaging the MIT community to determine how the university could address climate change and with offering recommendations.

"[128] The following day, Fossil Free MIT began a sit-in outside the office of the President to protest the shortcomings of the plan, including the rejection of divestment.

[136] It is clear the transition to a clean energy future is inevitable, beneficial and well underway, and that investors have a key role to play.A number of individuals and organisations have voiced support for fossil fuel divestment including: In March 2015 Mary Robinson, Ban Ki-moon's special envoy on climate change and former Irish President stated, "it is almost a due diligence requirement to consider ending investment in dirty energy companies".

[147] In 2020, three candidates for the Harvard Board of Overseers were elected on a platform of climate action and social justice, with fossil fuel divestment at the center of their campaign.

The NSA whistle-blower Edward Snowden commented: I am proud to offer my support and endorsement for Climate Action Society's fossil fuels divestment campaign.

[227] In 2019 the Goldman Sachs bank divested from arctic oil, coal thermal mines and mountaintop removal projects[228] In 2015, the London Assembly passed a motion calling on the Mayor of London to urgently divest pension funds from fossil fuel companies[229][230] The UK government has explicitly warned Local Authorities in the UK that they may be penalised if they boycott suppliers on the basis of involvement in fossil fuel extraction so long as it remains government policy not to boycott.