Last month I had the chance to be at the forefront of a myth buster. In fact, I busted the myth myself as I was standing on stage presenting on Fossil Free Investing and the Divestment Movement.
If unfamiliar with the divestment movement myth, it is the misconception of the movement is solely pushed by students only because it started on university campuses around the world as well as the rise in popularity of 350.org which has been initially founded by students. However, the divestment movement is much broader and wide spread amongst different demographics especially with women, millennials and pension funds.
Before getting deeper into the topic, I’d’ like to explain what is the divestment movement as not everyone is familiar with it. The movement targets the fossil fuels industry. The idea is to pull invested money out of companies operating in the fossil fuels industry limiting their ability to fund new exploration projects and other necessary investments growing profits and/or assets. Like everything else, there is a push back. Opinions supporting that if one person or group of people divest, others will buy the shares or private bonds offsetting the initial action. However true, it is important not to underestimate the power of the collective. As multiple organizations begin to divest, such as universities, pension funds, unions, institutions and so on, rapidly the demand will also drop and will ultimately affect the shares’ prices making the stock less attractive for all investors.