“A divest-and-exclude approach toward carbon-intensive companies and industries may be overly focused on mitigating perceived risk in the shorter term and could remove return opportunities in actively managed investment strategies over the longer term.”

[COMMENTARY]  Some studies show that returns can be enhanced by investing in and engaging with companies at the beginning of their decarbonization-sustainability-ESG efforts!
Considerations Around Fossil Fuel Divestment for Endowments and Foundations, by Fidelity Investments, February 27, 2025, Institutional Investor, USA.