The Proof in the Pipeline: Fossil Fuels and Social Inequality

Arina Abbott oversees marketing at Green Alpha Advisors, an asset manager that invests public equities in the innovation-driven, sustainable economy. While fossil fuel risk has reared its ugly head in the form of blazing fires, stronger storms, and oil-stained beaches, the U.S. remains home to the highest number of climate change deniers in the world. Meanwhile, systemic inequality has continued …

Balancing Corporate Values with Investor Demands

The Challenges of Industry-Led Scaling of a Low-Carbon Power Supply Parker Liautaud Abstract The private sector is under increasing pressure to address the financial risks of climate change. At the same time, opportunities for low-carbon economic growth are becoming more attractive to potential investors, especially in scaling up renewable energy (in particular, solar and wind power), retrofitting coal power plants …

Climate Change Finance Data: Looking Under the Hood

Patrick Reed Yale University     Gabe Rissman Yale University     Logan Yonavjak Yale University MBA/MF Candidate, 2016     Contributing Authors Evan Dryland, MBA Associate, JP Morgan Chase     Yonatan Landau, MBA Independent Consultant     Dillon Lanius NYU Stern MBA Candidate, 2016     Sebastian Vanderzeil, MBA  Global Thematic Analyst, Cornerstone Capital       Abstract …

Do Palm Oil Financiers Care About Sustainability?

Pek Shibao The following article is an expansion of one that first appeared in the JEI in March 2015 and was subsequently adapted from a series of articles that ran in Mongabay from 26 January to 8 February 2016.   Within the sustainability sector, finance is increasingly being seen as a powerful lever to help companies “green” their operations. Over …

The Risks and Returns of Fossil-Fuel-Free Investing

  John Willis Portfolio Manager, Sustainable Insight Capital Management Paul Spence Head of Portfolio Construction & Analytics, Sustainable Insight Capital Management   1 Executive summary There is a persistent debate surrounding fossil-fuel-free investing. Financial market participants are examining the implications of such strategies with increasing scrutiny. In this paper, we analyse the performance of three different fossil-fuel-free portfolios, all against …

Optimal Diversification and the Energy Transition | The JEI

  Jakob Thomä, 2° Investing Initiative / Conservatoire National des Arts et Métiers Stan Dupré, 2° Investing Initiative Alexandre Gorius, Paris Dauphine University Manuel Coeslier, 2° Investing Initiative / Mirova / Ecole Centrale de Nantes, Audencia School of Management Danyelle Guyatt, PhD, Collaborare Advisory Abstract Capital allocation decisions in equity markets are significantly influenced by market capitalization-weighted indices. They are …

Reinvesting after Divesting: A Few Fossil-Fuel-Free Options

Robert Schwarz, MBA, MS Although much has been written lately in the responsible investing (RI) space about divestment from fossil fuels, very little of the content identifies actual market-based capital re-allocation choices for investors who want to adopt a fossil-fuel-free (FFF) investing strategy. Investors may be armed with a basic understanding of the issues, but they lack the full capacity …

The Demise of Divestment

Gerrit Heyns Co-Founder of Osmosis Investment Management Divestment as an investment strategy is inherently flawed. The protest leadership is well aware of this but marches on, hoping to gain greater public awareness. At best, the complete closure of every listed fossil fuel business on the planet would impact less than 70% of the world’s combustible carbon reserves, most of which …

Editorial: The Divestment Conundrum

  Cary Krosinsky Editor Divestment from fossil fuels is a topical and divisive issue on university campuses in the United States as well as throughout the world. Questions remain about the utility of divestment as an investment strategy for solving climate change; as a result, we thought it would be helpful to provide a neutral space for both sides of …

The Compelling Case for Divestment

            Bevis Longstreth, JD In Cancun, Mexico, at the 2010 United Nations Climate Change Conference, nations of the world set 3.6°F as the permissible increase in global average temperature over the preindustrial level. An increase beyond that would be a catastrophe. Since Cancun, the dangers of climate change have grown, become palpable in myriad ways, …