Arabella Advisors, September 2018
- 28-page report
- Best for: Providing an overview of the movement and its financial and social impact, both on colleges and more generally.
- Covers: Growing success of the movement from mission-driven institutions, cultural institutions, insurance sector, and sovereign development funds; the increasing financial case for divestment from fiduciary duty to the rise of fossil-free investment products
- This report can be given directly to administrators as is. It can be a strong appendix text to any proposal you might present. It also came out very recently, which is a plus.
- For Arabella Advisors' December 2016 report, download here.
- "In four years, assets committed to divestment have increased by 11,900 percent. Fossil fuel companies are listing divestment as a material risk factor in their annual reports and securities filings, and climate litigation around the world is deepening the risk for fiduciaries." (p. 25)
"[The report] found that assets under management by investors committed to divestment has increased 11,900 percent, from $52 billion four years to $6.24 trillion today. According to the report, the primary drivers behind that growth are insurance companies (more than $3 trillion under management), pension funds, and sovereign wealth funds. Ireland, which has an €8.9 billion ($10.4 billion) sovereign development fund, became the first country in the world to commit to divest its wealth fund from fossil fuels, while New York City, with $189 billion held in pension funds, is the largest city to date to do so."
"According to the study, the accelerating trend is fueled by a combination of ethical, financial, and fiduciary imperatives — including grassroots mobilization against fossil fuel projects and pipelines; the introduction of new fossil-free financial products; new analyses showing that investors can divest without jeopardizing their risk/return profiles; and the growing imperative faced by investors to manage their reputational risk and align themselves with the goals of the UN Paris Climate Agreement."