“PODCAST: Cary Krosinsky explains why the divestment movement doesn’t help solve climate change and what fund managers can do instead.”
[COMMENTARY]I haven’t had a chance to listen to this podcast yet. but Cary Krosinsky is someone with terrific credentials and whom I greatly respect. From my perspective, there’s an argument that can be made that divestment affects secondary financial markets and has little direct influence on new issuers of say, funding new coal projects.
Also, note that starving funding for new fossil fuel-related projects can make their stocks more profitable than they might otherwise be. The reason is that continuing or rising high prices for their products (note oil!) with dwindling supply enables much higher margins and profits. Thus benefiting shareholder returns.
Furthermore, it possibly detracts from the possibility of funding fossil fuel-related projects to reduce carbon emissions.
Yale climate professor: ‘Divestment is a waste of time and energy,‘ by Loukta Gyftoppoulou, September 2, 2021, Wealth Manager, USA.