Up to 1,485 institutional investors, representing $ 39,200 billion in assets under management, have so far engaged in at least one form of divestment from fossil fuels, said DivestInvest, a global network of individuals and companies. organizations, in a press release. new report Tuesday.
Since the start of the divestment movement in the early 2010s, it “has grown to become a major global influence on energy policy,” DivestInvest said.
In 2014, investors with just $ 52 billion in assets under management had the same commitment to divert investments away from fossil fuels.
In recent years, the growth rate of divestment pledges has accelerated, DivestInvest said, noting that the first three years of the campaign generated 181 public pledges, while the last three years saw 485 new pledges.
“These figures only reflect known public commitments to divestment. More and more institutions, not to mention individual investors, are almost certainly disengaging in numbers beyond that, as the dominance of the fossil fuel sector in the stock market has declined significantly, ”the DivestInvest report said.
Among the notable divestment promises is the Rockefeller Foundation, created by John D. Rockefeller in 1913. In December 2020, the Rockefeller Foundation decided to divest from fossil fuels and not to make any new investments in the industry. The funds for the creation of the $ 5 billion foundation originally came from oil money from Rockefeller and the Standard Oil company he founded at the end of the 19th century.
Also in December 2020, the $ 226 billion New York State Pension Mutual Fund said it was undertaking a review of all energy companies it invests in, to assess prepare them for the energy transition and get rid of those considered to be the most risky in climate-related investments.
“One of the movement’s most important victories has been the gradual acceptance by the financial elite of the movement’s main financial arguments. Fossil fuels are a bad bet financially, ”wrote the authors of the DivestInvest report.
By Tsvetana Paraskova for OilUSD
More reads on Oil Octobers: