What is Divestment?
Divestment is the process of selling off investments in a particular asset, industry, or company due to ethical, financial, or political reasons. It is essentially the opposite of investment, where instead of putting money into something, you are taking it out.
Types of Divestment
- Environmental Divestment
- Political Divestment
- Values-based Divestment
Reasons for Divestment
There are many reasons why individuals, organizations, or countries may choose to divest. Some common reasons include:
- Environmental concerns
- Human rights violations
- Financial underperformance
- Political disagreements
Examples of Divestment
One famous example of divestment is the movement to divest from fossil fuels. Many organizations and universities have chosen to sell off their investments in coal, oil, and gas companies in order to take a stand against climate change.
Case Studies
In 2015, the Rockefeller Brothers Fund announced that they would divest from fossil fuels, citing environmental concerns. Since then, many other organizations have followed suit, including the World Bank and the Church of England.
Statistics on Divestment
According to a report by Arabella Advisors, the total divestments from fossil fuels reached $14.5 trillion in 2019, a significant increase from previous years. This shows the growing trend towards divestment as a way to address climate change.
