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Forbes quotes Croatan Institute president on fossil-free investing


Investment professionals are realizing that business-as-usual cannot continue, and that they need to stop investing in extracting, refining, and burning fossil fuels in order to stabilize the climate and avoid the destabilizing impacts of global warming. The first step for investors is to divest and then re-align investment strategies into lower-carbon solutions across industries. Divestment makes sense from a fiduciary perspective given the increasing uncertainty surrounding the valuation of fossil fuel securities, due to both a carbon bubble and risk to the value of portfolios.

Logan Yonavjak quotes Joshua Humphreys, president and senior fellow at Croatan Institute: "Long-dated bonds of fossil fuel companies, some with maturities extending decades into the future, could readily become toxic financial assets as the credit quality of their issuers deteriorate in reaction to belated market responses to the harsh reality of stranded asset risk."


To learn more about fossil-free divestment, see Institutional Pathways to Fossil-free Investing.

To contact Joshua Humphreys, send an email to josh@croataninstitute.org.

Source: Logan Yonavjak, "Divesting from Fossil Fuels Means a Cleaner, Safer and More Resilient Future," Forbes, July 29, 2013.