Investors divesting fossil fuels

May 19, 2014 | By Barbara Vergetis Lundin

Consumers and environmental groups aren't the only ones clamoring for less fossil fuels and more renewable energy. In the past year, the number of U.S. investment professionals offering fossil fuel-free portfolios has jumped by more than 50 percent -- from 22 percent to 36 percent -- amidst signs of growing retail and institutional investor interest in such choices, according to a Fossil Fuels Divestment Survey released by First Affirmative Financial Network.

A growing number of professionals see 2014 as the year that investors will rethink their investments in fossil fuels, as compared to last year (72 percent in 2014 vs. 67 percent in 2013). Of survey respondents, 76 percent believe there are growing risks associated with investing in fossil fuel extractors/manufacturers.

Just less than half of survey respondents say institutional investors are interested in fossil fuel free investing; more than three-fifths (62 percent) responded that retail investors want fossil-free investing choices.

More than half of respondents (56 percent) are concerned about "stranded asset" risks created by climate change.

"The growing drumbeat of responsible investors seeking investment strategies with little or no exposure to coal, oil, and gas extraction companies will only increase as more evidence of the negative effects of climate disruption reverberate from the recent IPCC and National Climate Assessment reports, and as more analysts and investors understand the stranded asset risk equation," said Steve Schueth, First Affirmative president.

For more:
- see the survey results

http://www.fierceenergy.com/story/investors-divesting-fossil-fuels/2014-05-19