We know what it means to invest, but what does it mean to divest? Well, basically, divesting is selling a security or group of securities based on principal. Back in the 80’s and 90’s, investors divested from companies doing business in South Africa because of the oppressive Apartheid regime. This action was a contributor in the eventual fall of the government.
At Earth Equity Advisors, we actively help our clients divest from fossil fuel investments and reinvest the proceeds into positive solutions. We typically help clients reinvest into:
- Alternative energy
- Energy efficiency
- Battery technology
- Green building/real estate
- Natural & organic foods
- Green/community finance
In most cases, the act of divestment neither hurts nor helps portfolio performance according to a 2017 study by GMO Investment Management.
We believe it is important to know what you own, and to align your investments with your values. As climate activist Bill McKibben says, why would anyone invest in companies that are changing the chemical composition of the atmosphere for money?
Since 2004, Earth Equity Advisors has specialized in sustainable responsible and impact investing, and we perform the due diligence necessary to help you invest fossil fuel free. The same is true for our Align portfolios.