Kevin Coldrey: A personal South African divestment story

KevinColdreyI am an economist by training and worked in the industry for almost a decade before making the decision to change career paths. I am currently furthering my studies, this time focusing on climate change and sustainable development. I hope to use my experience in the corporate sector to drive the change that is needed, looking for ways to incentivise behaviour change financially.

Between 12 and 18 months ago I decided to divest out of fossil fuel-based companies as best I could. I was at the time invested in a resources unit trust in SA, a general equity unit trust in SA, a private share portfolio of SA stocks, and two separate offshore unit trusts.

The decision was based on two factors:

  1. I felt it was my responsibility to contribute to a low-carbon future, and
  2. the returns that I was earning through holding shares like Sasol was being hampered by the commodity downturn; and my outlook for the global energy economy was, and still is, that we will never see the same prices for fossil fuels as we had in the lead up to the global financial crisis because I believe we have turned a corner in renewable energy generation.

My divestment process was hampered by the limited options available to retail investors but I did the following:

  • I sold my holdings in the resources and general equity unit trusts in SA (the general equity unit trust included significant holdings in the likes of Sasol, Anglo American, BHP Billiton, etc).
  • I sold my private shares in fossil fuel-based companies.
  • I kept my two offshore investments as I wanted to hedge my exposure to the Rand which I still believe is due for a further devaluation.
  • I invested in the Nedbank Green Savings Bond which is a guaranteed fixed investment vehicle where all capital raised is earmarked for renewable energy projects in SA.
  • I bought shares for my private portfolio that I felt were less carbon-intensive and where I felt that they were operating in industries that will become more important in the future such as water and agriculture.

If you have a personal divestment story to share with us, please get in touch.

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2 comments

  1. Congratulations on such a brave decision. It is so good to know that a person schooled in making money has the intelligence to change his focus to saving our planet rather than making more money. My appeal to you is in addition to focusing on business get involved in enlightening the community via the schools, churches, temples and clubs etc. Good start my man. Keep it up.

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