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Fossil-free investments perform

Fossil-free investment is now a real choice, and here’s why….

FOSSIL-FREE INVESTMENTS OUTPERFORM CONVENTIONAL STOCKS

The case for fossil-free investment continues to gather strength, with new information showing that fossil-free indexes have outperformed conventional indexes over the last five years. The data, from the London-based FTSE Group, reveal that FTSE’s North American fossil fuel free index beat the conventional benchmark index while also demonstrating lower rates of volatility. This news comes on the heels of an announcement that a fossil-free version of the S&P 500 outperformed the original index by 1.5 per cent last year. While past performance is not a guaranteed predictor of future success, these trends coupled with the volatility of coal and oil markets show that divesting from fossil fuels makes financial sense. The Australian National University’s decision to divest from fossil fuels in 2014 is a prominent example of this, despite being relentlessly attacked by commentators and the government for its decision to dump shares in Santos among others, it was soon proven to be a savvy move as the company’s worth collapsed soon after. As the burgeoning divestment movement gains more traction, fossil fuel backers are trying their hardest to ridicule it as “feel-good folly.” But the truth is that the divestment movement is successfully challenging the polluting fossil fuel industry and protecting investors from risky investments. With nearly 200 cities, universities, and other institutions having sold off $50 billion of fossil fuel stock, the real impact of this type of divestment should not, and cannot, be ignored.

5 yr performance graph

KEY POINTS

About Darin Sullivan (1969 Articles)
President of the Fire Brigade Employees’ Union and a professional firefighter with more than 25 years’ experience. I live and work on the NSW South Coast, Australia. I am a strong advocate for firefighters and emergency service workers with an interest in mental health issues and caring for those around me. I am a Director on the NSW Fire Brigades Death and Disability Super Fund and work with charities including ‘The Movember Foundation’. As a leader and activist I have long been active in the campaign for action on climate change. I am a Station Commander in the fire and rescue service in NSW and have 30 years experience fighting fires, both rural and urban. I am passionate about highlighting the impact climate change is having on fire preparedness and fire behaviour in Australia, and the risks associated with inaction on climate change. I am also a spokesperson for the Australian Climate Media Centre.
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