September 18 (Renewables Now) - More than 1,110 institutions with over USD 11 trillion (EUR 10tn) in assets under management have already committed to divest from fossil fuels, according to a new report.
Back in 2014, assets committed to divestment stood at just USD 52 billion. The new target is reaching 2,020 institutions and USD 15 trillion pledged to divest by 2020.
“The rapidly accelerating pace of divestment commitments is striking: while it took two years to shift the first USD 2 trillion, the most recent USD 2 trillion has taken just under 6 months,” say the authors of the report, 350.org and Divest Invest.
Sovereign wealth funds, such as Norway’s Government Pension Fund Global (GPFG), banks and insurers, global asset managers, cities including Cape Town and New York, health care organisations like the British Medical Association, universities, faith groups and foundations like the Rockefeller Brothers Fund have committed to policies black-listing coal, oil and gas. Recent additions to the list include Nordea Liv & Pension Sweden, Chubb Ltd and Amundi.
“Divestment, once strictly a moral call to action, is now also seen as the only prudent financial response to climate risk: The fossil fuel industry has been lagging the market for over a decade now, finishing dead last in the S&P rankings in 2018. The sector is underperforming, volatile, and exposed to multiple transition risks, presenting a decidedly poor bet for investors,” 350.org says.