stranded assets

May workshop for investors and fund managers: ‘Fossil fuel divestment: Fad, necessity or opportunity?’

Summary

On 10 May 2017, Fossil Free South Africa convened a workshop for financial services professionals in Cape Town on fossil fuel divestment. The aim of the workshop was to build awareness of climate and carbon risk – and the divest-reinvest movement – amongst financial services professionals, and to catalyse the creation of divested funds and instruments. Judging by broad responses, we succeeded in the first objective, but the second objective – creating new funds – will take a great deal more work, though hopefully the necessary conversations have started. (The background reading for this workshop appears here.) Some video excerpts appear here.

Presentations

Discussion

After the presentations, we divided into four groups for a deeper discussion of some of the issues that had been raised. The discussion was covered by the Chatham House Rule, and is observed in these notes. These are some of the broad points that arose: (more…)

UCT considering divestment, and other news

There’s been an amazing flood of news on the divestment front over the past couple of months – know that you are part of an extremely fast-growing movement.

First up, local news – following our promptings, and after our meeting with the UCT Vice Chancellor as Fossil Free UCT, the University of Cape Town has committed itself to an ethical investment strategy that may include fossil fuel divestment – and we have (again, as Fossil Free UCT) been invited to join the university’s task team looking into the mechanics of divestment. We’re cautiously excited about this development.

Fossil Free SA at the Renewable Energy Festival in Greenpoint, Cape Town

Fossil Free SA at the Renewable Energy Festival in Greenpoint, Cape Town

We’ve also had initial conversations with a local asset management company that has committed to looking into a fossil-free fund, and hope we can share more details soon. And we met with the public at the  WWF/AIDC Renewable Energy Festival on 28 March. Many thanks to the volunteers who helped manage our stand!

Incredibly, the United Nations Framework Convention on Climate Change has set aside ‘neutrality’ to also dive in and endorse the divestment movement. And the Guardian, one of the world’s great newspapers, has endorsed divestment and set up a petition (please sign up) calling on Bill Gates’ massive Gates Foundation and the UK’s Wellcome Trust to divest (yes, the Gates Foundation currently profits from climate-changing investments that contribute to the poverty they are supposed to be ending.)

Meanwhile, we’re having to take a few weeks to focus on more fund-raising, as current funds will be exhausted around September.

Take action now

• Fill in our supporters form, if you’ve not done so already
Donate (now with Snapscan option)
Sign the Guardian’s petition

Other news

Bill McKibben writes in the Guardian of how far and fast the divestment campaign has moved, and reminds us of the limited role of international negotiations, which tend to reflect change rather than creating it. In fact, some consider the climate negotiations a complete waste of time. The Guardian Media Group is putting its money where its mouth is, and also divesting.

The UK’s climate and energy secretary, Ed Davey, has also backed the divestment campaign, as have 2,000 – two thousand – academics dedicated to the struggle to end poverty: Academics Stand Against Poverty.

Now, here are 10 myths about divestment, put to rest by the Guardian. And five more, put to rest by Rolling Stone.

Meanwhile, the Telegraph outlines some of the increasing woes of the fossil fuel industry: “The International Energy Agency (IEA) says fossil fuel companies have spent $7.6 trillion on exploration and production since 2005, yet output from conventional oil fields has nevertheless fallen… the world’s leading oil and gas companies were sinking into a debt-trap even before the latest crash in oil prices.”

Also, the World Federation of Public Health Associations has called for “a rapid phase-out of coal” to “limit further global warming and prevent illnesses and deaths associated with air pollution”.