Fossil fuel divestment – is this the strategy for you ?
Although there are likely a few opportunities in fossil-fuel investment strategies out there, Ethiquette has recently had conversations with fund offerings with two distinct approaches :
- fossil fuel free portfolio ;
- exclusion of the least progressive companies, and engagement towards an energy transition with the others.
How to identify publicly traded fossil fuel companies ?
The Carbon Underground 200 is an annually updated listing of the top 100 public coal companies globally and the top 100 public oil and gas companies globally, ranked by the potential carbon emissions content of their reported reserves. The list is produced and maintained by Fossil Free Indexes, LLC.
For a spreadsheet of the top 200 fossil fuel companies by size of reserves click here.
For investors with a minimum of $100,000 to invest, the Blue Heron Advisory Group offers a fossil-fuel free separately managed account. The full screening process for their portfolios can be found here: https://www.cibcwg.com/c/document_library/get_file?uuid=3c329a24-80f1-458a-8ba5-152da152c424&groupId=841263
NEI’s Ethical funds and the Desjardins Environment and Societerra funds take a different approach to the complex challenge of transitioning away from fossil fuel-based systems. This approach tends to exclude coal companies (which are the least progressive), and then engage companies to facilitate a transition to a low-carbon economy. For more complete information on this strategy see this report : http://www.neiinvestments.com/Documents/Marketing/EthicalFunds/Getting%20Real%20About%20The%20Energy%20Transition.pdf
So, concretely, what would engagement with these companies look like ?
Read the details of the Ethical Funds engagement with Suncor here: http://www.ethiquette.ca/en/strategies/engagement/suncor-petro-canada/