If you own the S&P 500...
you own fossil fuel firms. About 10% of the S&P is invested in direct carbon emitters as of 2019. For every $1 million invested in the S&P 500, investors are responsible for about 90 tons of carbon emissions. That's equivalent to all of the emissions from an American household's over 10 years.
Portfolio managers often struggle to offload fossil fuel assets because those sectors continue to provide exposure to a crucial global industry. As a result, many “divested” funds either actively trade individual stocks at high overhead cost, or pursue a narrow definition of fossil fuel firms by excluding oil field services firms like Halliburton. Investors must take great care when selecting a divested portfolio to make sure their demands are being met.
Moreover, the process of divestment can be very costly, as it may involve the realization of highly appreciated, carbon-heavy assets.
Our experience with derivatives trading and our hands-on & fiduciary approach, gives us the expertise & agility required to tailor a divestment strategy that mitigates divestment risk without compromising social impact.
Carbon Screener for Your Portfolio
As You Sow's Fossil Free Funds screens the 15,000 most popular ETFs and mutual funds for fossil fuel exposure.
It's a great tool and we're proud to support them in their efforts to promote investor responsibility.