That’s the end of our live chat today. Thanks so much to everyone who submitted questions, and to our fabulous panelists.
You can keep up to date with the Keep it in the Ground campaign here. If you’re interested in personal divestment, sign up for our “divest your life” series. Thanks again!
And final thoughts from our panelists:
Thanks for all your questions - it was really fun to hear from all of you! Check out www.greencentury.com, 350.org, www.greenamerica.org for more fossil fuel free resources. And thank so much to The Guardian team - your divestment work is inspiring AND making a difference!
Thanks so much everyone! Take the Individual Pledge to be or go fossil fuel free in your personal investments at DivestInvest.org/Individual.
Final thought: Together, we can Fuel Change!
Any thoughts on reinvestment options in Canada?
Guardian staff Another one from email - "I am a retired Canadian physician with a personal investment portfolio which I use as my retirement income. I have just today divested my entire portfolio of fossil fuels. Now the challenge for me is to find sources for reinvestment. Can you help?"
I wish we could help directly. But, it's complicated if you are not a U.S. citizen or resident. Have you tried asking a financial advisor who does socially responsible investing?? In the U.S. there are networks such as First Affirmative Financial and Progressive Asset Management that lists advisors who know this area really well.
Also, check out Responsible Investments Canada at www.riacanada.ca
Connect with 350.org organizers in Canada, DivestWaterloo.ca, and FossilFreeFaith.ca
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How can I get more information about fossil fuel investments from my pension fund?
Guardian staff This question came in from a reader over email:
"I contacted my pension fund about fossil fuel investments and I've been waiting for a response now for two weeks. What can I do now?"
Get some fellow employees to ask with you again. Pension funds have been slow to move on this so you need to show that employees want fossil fuel free options. If you are in CA, you can also join the campaign to pass a bill through the legislature that 350California and Environment California are working to pass
Couple other active campaigns targeting pensions -
-in MA there is http://divestourpensionsnow.org/ and http://350mass.betterfutureproject.org/take_action_divestment
-for more private funds, there is https://www.voteyourpension.org/
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What are their risks associated with divestment? Could investors lose money in the long-term?
You should check out the studies at the bottom of Fossil Fuel Free Investing page at www.greencentury.com. While there are risks associated with any stock investments, fossil fuel free investing may protect you from potentially stranded assets. And may allow you to take advantage of growing sustainable economy!
My pleasure! Sign up for our email list to get information on divestment on an ongoing basis.
Financial analyses and markets are showing that if you have already gotten out of fossil fuels, you have gained, not lost. With the coal market already in structural decline (CarbonTracker infographic here: http://www.carbontracker.org/wp-content/uploads/2015/03/US-Coal-Crash-infographic-sourcelogo.pdf), and the global divestment and clean energy investment movements expanding rapidly, it's just a matter of time before oil and gas follow. The greater longer term risk is staying in fossil fuels.
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Can annuity funds be divested if they are already paying out?
Guardian staff Here's a question that came in over email from one reader: "Is it possible to divest from a fund that is already paying out an annuity?"
It depends on the terms of the annuity. You need to contact your annuity provider.
Does NYSTRS invest in fossil fuels?
Guardian staff This question also came in over email: "I have a New York State Teachers Retirement System Pension. Will it be invested in fossil fuels?"
Plug in to the effort working to change that here: http://350nyc.org/fossil-free-nyc/
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Can you support divestment if you don’t have a big portfolio?
The amount of money is not an obstacle!
- Sign the divestment pledge at divestinvest.org
- Join the 350.org movement
- Start a small IRA with a fossil fuel free mutual fund. You can start as low as $1,000 with Green Century, for example.
And make sure to reach out to others as well to do those things. You can also participate in the movement as an Alumni with Responsible Endowments Coalition http://www.endowmentethics.org/alumni_initiatives
Guardian staff Thanks for your question. I think young people - and older ones for that matter - have shown a remarkable ability to take on complex and important issues in recent years and score meaningful victories. Look at net neutrality or the trans pacific partnership (TPP) trade deal - both looked like they were foregone conclusions before people got together, largely online, to derail them.
Guardian staff There are some good examples of actions people have taken to support divestment on Fossil Free's blog. Warning: contains posterior nudity.
See more here: A cheeky collection of our favourite climate actions
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How can we find out what our money is invested in?
How do you know where funds are being invested?
You can get the holding from a mutual fund from its annual or semi-annual report -- and that is required by the SEC.
There are other regulations governing institutions and other investments
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How easy is it for people to personally divest?
Guardian staff We've had a few questions about this. To sum up: So how easy is it for people to personally divest? If you’ve got a 401K at work can you divest that? What about tracker funds?
If the 401K is with a past employer, you could transfer the funds to an IRA at a fossil fuel free mutual fund. If the 401k is with your current employer, talk to them about adding a fossil fuel free option. Get more info on how to do this through our Extracting Fossil Fuels...at www.greencentury.com
The degree of difficulty ranges depending on what type of assets you hold and where they are. Start by screening out the top 200 public oil, coal, and gas companies that own the most unburnable carbon. Fossil Free Indexes updates that list and makes it available here: http://fossilfreeindexes.com/divestinvest. This the standard many in the US Divestment movement are using to begin the conversation with their family members, financial advisors, fund managers, colleagues, HR dept., etc. The more proactive an investment approach taken, the easier the process is.
If the 401K is with a past employer, you could transfer the funds to an IRA at a fossil fuel free mutual fund. If the 401k is with your current employer, talk to them about adding a fossil fuel free option. Get more info on how to do this through our Extracting Fossil Fuels...at www.greencentury.com
And a related question from reader emails:
What are the hardest places to divest in personal investments? It seems like many people may not realize they have money invested in fossil fuels. Where do fossil fuels investments tend to be most hidden?
Hmm. The easiest is if you own individual stocks. Many people use mutual funds in their retirement plans or in IRA's. You can find out the holdings from the semi-annual or annual report of those mutual funds. Hopefully online. But, if not, call the mutual fund company and ask how to get these reports.
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Are there mutual fund options?
As part of a long-term financial strategy, my family primarily invests in index mutual funds to avoid incurring short-term financial risk and to avoid paying hefty management fees (the fees we usually pay are well under 1%). We are very interested in divesting from fossil fuels, but as of now, it appears that all funds that exclude fossil fuel investments are actively managed with substantial fees. Are there any options for investors that wish to divest without paying such fees? (We are U.S. residents)
I'm aware that the FTSE recently released an index that excludes fossil fuels. Are there, or might there be in the near future, any mutual funds that track this index?
We have a passively managed fund - the Green Century Equity Fund. You should consider fees, but also loads and returns when evaluating investments.
What about other countries besides the US and UK?
Hi,
as a French reader of The Guardian, i'm jealous of the work you're doing in the UK ! Do you have a list of fossil fuel-free funds in other contries? Any information that can help us, citizen of the rest of the world, to divest our personnal funds ?
Thanks a lot!
Simon
We don't know of lists in other countries -- sorry! Check out your country's 350.org website for possible links. Also, for U.S. investors, lists are available at greenamerica.org
From Vanessa Green:
The Divest Invest Initiative is global in scope, so stay tuned for more access to international and regional resources via the Initiative’s portal page DivestInvest.org.
And again:
.@guardianeco Do you have a list of fossil fuel-free funds per country ? #keepitintheground
— IES FRANCE (@IESFRANCE) June 18, 2015
The Divest Invest Initiative is global in scope, so stay tuned for more access to international and regional resources via the Initiative's portal page DivestInvest.org.
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What are the no-carbon (lot just low-carbon) options for TIAA-CREF, asks reader mjinga?
Hi,
I have TIAA CREF and was surprised to see that the social choice option includes many oil interests. I have been in e mail contact with TIAA CREF and told they are about to launch a "low" carbon fund. I then asked about a no carbon option and an option to speak with a TIAA rep about changing my portfolio and I have been given a contact number/person. Any suggestions for responsible changes that are supported by TIAA CREF would be appreciated....
Unfortunately, most mutual funds -- including social choice options -- include oil companies. Press TIAA CREF to include options that are fossil fuel free, such as Green Century, which other retirement plans have added.
The good news is you're already taking one of the most powerful steps to accelerate change - engaging your fund/manager/advisor in a divestment conversation. We hear from a lot of folks that they want TIAA to offer a fossil fuel-free/no carbon option, so know that you are not alone. If you (or others) are interested in joining up to amplify the ask, be in touch vanessa@divestinvest.org.
Guardian staff Well there is certainly a lot of money that needs to be invested in CCS. The Grantham Institute had a report out this week that said the EU needed between €11bn and €35bn of investment in CCS by 2030. One would have thought someone could make some money out of that.
And what about carbon capture and storage, asks reader dfgreeley?
Thanks, I also have TIAA-CREF. Is there any value (TBL basis) to asking funds to invest in carbon capture and storage (CCS)? I sense this possibility isn't promising but haven't seen a recent comprehensive assessment.
Guardian staff Well there is certainly a lot of money that needs to be invested in CCS. The Grantham Institute had a report out this week that said the EU needed between €11bn and €35bn of investment in CCS by 2030. One would have thought someone could make some money out of that.
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A question from William Wilson about whether key players are denying the trend of value investing:
After investing in companies that seem ethical, socially valuable, and had good growth prospects it seems today has never been more difficult. Is there a concerted effort on the part of key players inside the SEC, Wall Street, market makers, analysts paid to trash some companies etc etc to deny the trend of value investing? I think there is.
For instance I have invested in several China small cap companies that are doing great things for energy efficiencies like CPQQ. Insiders were advised by at least one key player here to take their companies private after they dropped to below cash on the books. Profitable, great prospects to solve a problem, great relations with the Chinese government, and yet almost all shareholder value/price has been destroyed. One wealthy Texan advised them to delist and he said he did this for several other small cap companies listed here.
Like Enron there are key insiders that have to let the trend of ethical investing, which includes divesting from fossil fuels to proceed in my opinion. Yet the SEC seems missing in action, no lawsuits, little or no media coverage other than hit piecies to further the damage etc. As China leads with Solar and India leads with wind it seems critical the mega caps being favored for a long time now is exposed or the real engine of change to efficiencies etc of small caps will continue to be denied just as climate change is. Thank You for listening.
A response from Leslie Samuelrich:
There is a growing body of work that shows how incorporating environmental, social and governance considerations may improve performance. But, mainstream financial analysts have been slow to see and incorporate this information in some cases. Check out USSIF.org for data and lists of investments. Also, if your advisor just doesn't follow this information, it may be time to consider switching
Guardian staff To back that up. here's a link to a 2013 Harvard Business School study which shows that $1 invested in a portfolio composed of "high sustainability" companies between 1992 and 2010 would have outperformed a control group by 47%.
Do you have something to add or another question? Send it to us in the comments below!
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Welcome, and thanks for joining us today!
Our live chat kicks off with a question from Dominic Rushe:
Hi guys and thanks for doing this. It’s a very interesting day to talk about divestment considering Pope Francis’s comments about the “cheerful recklessness” with which we have treated the planet. As you know there is pressure on the pope to divest the Catholic Church’s money. Do you think divestment movement is catching momentum? Have you seen changes in people’s level of interest?
Hi everyone! Thanks for having us join this important conversation! At Green Century, we are surely seeing divestment growing...it's the fastest growing divestment movement in history according to Oxford University...and we hear from individuals every day that want to align their investments with their values
It's exciting to be talking to folks today given the Pope's encyclical on climate change. Do you all feel inspired by this? I think it is going to give more visibility to the move to clean energy.
It's growing more rapidly than any other divestment movement. We hear from people everyday who want to invest fossil fuel free!!
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The Guardian’s Keep it in the Ground campaign is calling on the world’s two largest charitable foundations to divest from fossil fuels and reject a business model that puts the world on course for catastrophic climate change.
Anyone with a checking, savings or 401k account will almost certainly have money invested in oil, gas and coal companies. This money – your money – is being used by fossil fuel companies to identify further reserves that cannot be burnt if temperature rises are to stay within the 2C (4F) threshold essential to preventing dangerous climate change.
Fossil fuel companies are firmly embedded within the financial system, but it doesn’t have to be that way. Impact investment is taking hold and investors and financial institutions are beginning to understand the demand for financial products unconnected to fossil fuel companies.
Individuals can use their financial muscle – however large or small that might be - to divest their own money or pressure financial institutions to give them to option to exclude their money from fossil fuel investments.
To explore the power and potential of individual action, the Guardian has launched a new series on personal divestment. As part of this, at noon ET on Thursday, the following panelists will be online to answer your personal divestment questions:
· Dominic Rushe, Guardian US business editor
· Leslie Samuelrich, president at Green Century Capital Management, the first group of fossil fuel-free funds in the US
· Vanessa Green, director of the Divest-Invest Individual campaign, which has collected more than 2,000 fossil fuel-free pledges from individual investors in 20 countries
You can submit your questions in advance or live in the comments below, or send them to us on Twitter @guardianeco and using the hashtag #keepitintheground.
Readers should be aware any answers given do not constitute financial advice or endorsement of any particular product. Readers should consult a financial advisor where appropriate.
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Thanks everyone for your great questions. And thanks Leslie and Vanessa. That's about all the time we have today but we should do this again. Any final thoughts?