The shift towards fossil fuel divestment has been gaining momentum in recent years, particularly among large institutions such as universities, pension funds, and local governments. By withdrawing their funds from fossil fuel investments, these institutions are demonstrating that they are looking toward a future powered primarily by clean, renewable energy. Divestment campaigns are growing more popular at institutions worldwide, largely due to the students, employees, and citizens that are voicing their opinions on the matter.
Why do institutions have so much invested in fossil fuels?
Many institutions such as universities, receive endowments as donations to maintain their facilities and attract reputable workers and educators to join their ranks. These institutions often invest this money in large industries to further increase their capital, and fossil fuels have traditionally been viewed as a lucrative investment opportunity.
The good news is that the divestment campaign is gaining popularity in Canadian institutions
Institutions are beginning to take a stand to distance themselves from the associated dangers of fossil fuels, and are being encouraged to use their funds to support renewable energy and other clean technologies instead. By investing in these cleaner technologies, divestment campaigns are a key part of the shift to the renewable energy transition.
What impact are we seeing now with divestment?
Over 500 institutions worldwide have collectively pledged to divest $3.4 trillion. Some notable institutes divesting their funds include: The Rockefeller Brothers Fund, the University of Glasgow, and the City of Oslo. When larger institutions pledge to divest their stock in fossil fuels, they influence their partners to do the same. Soon enough, the stigma of fossil fuel investment could be equal to that of tobacco.
How are students contributing?
Most divestment campaigns within universities are spearheaded by passionate students spreading the message across their own campuses as well as others. Several student-run organizations have published setup guides for others to launch divestment campaigns at their own universities, helping the cause gain traction in all parts of the world.
What can you do?
“With a Canadian price on carbon looking more and more inevitable, divestment isn’t just the right thing to do. It’s the smart thing to do.” – Tim Nash, The Sustainable Economist.
There are a number of ways that Individuals looking to divest their portfolios can take affirmative actions:
- Most banks and pension funds hold sizeable investments in fossil fuels; petitioning for their divestment would be a large step in the right direction. Shareaction.org is tool that can be used to pressure pension funds to divest as well.
- Personally withdrawing funds from these institutions and investing them in community organizations can send a strong message. Community bonds that support local projects are a sound investment in a growing market, and promote socio-environmental change on a local level. SolarShare, ZooShare and CED Co-op are three Ontario renewable energy co-ops currently offering community bonds to their members.
- Investing with larger groups who have fossil fuel-free options like IA Clarington, AGF, MD Management, and Genus
- Work with a financial planner (like The Sustainable Economist) to build a custom divestment portfolio
Firas Khalifeh is a student of Environmental Studies at the University of Toronto.
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