December 12th, 2016 By Brian Kahn climatecentral.org Read full article here
…A network of local governments, pension funds, faith organizations, philanthropies and wealthy individuals representing $5.2 trillion in assets have committed to — and in some cases already started — divesting from fossil fuel companies, according to a report released on Monday.
That’s a huge sum of money for a movement that started just four years ago on U.S. college campuses and its growth is likely to continue as the world strives to reach its climate goals.
“It’s pretty clear that the growth trajectory is enormous,” said Ellen Dorsey, the executive director of the Wallace Global Fund. In the past 15 months alone, the assets represented by the fossil fuel divestment movement have doubled.
…Those divesting include Norway’s sovereign wealth fund, Germany-based financial services giant Allianz, and Amalgamated Bank, which in September became the first U.S bank to divest. Private businesses represent $4.6 trillion in assets being divested, nearly 90 percent of the overall total.
Dorsey said that the Paris Agreement, which was finalized one year ago on Monday and went into effect last month, raises the stakes of divestment and also sends a message that more money will need to flow into clean energy if the world is to stay below the 2°C threshold. That’s led firms representing $1.2 trillion in assets in the report to move toward a divest-invest strategy of taking the money they’re pulling out fossil fuels and putting it into clean energy…