Sunday, November 24, 2013

Is Coal the New Tobacco for Shareholder Engagement?

The divestment movement among shareholders is now targeting fossil fuels as a new category of (environmental) sin stocks.  Although climate change legislation seems dead in the water, a new movement is calling for institutional investors to divest from fossil fuels.  As the proverbial long-term investors, pension funds and endowments are increasingly moving away from dirty fuels - not an easy thing to do within traditional asset allocation models.