Posted By Rachel Alembakis on in Environment, Fund Management

Eliminating the fossil fuel sector from a global benchmark index can yield a small positive return effect with low tracking error, according to analysis by Impax Asset Management.

ImpaxImpax created model equity portfolios structured around fossil fuel divestment and tilts towards energy efficiency and renewable energy investments. Impax evaluated the impact of fossil fuel divestment because there is a strengthening campaign seeking to persuade institutional investors to divest from fossil fuel-based assets as a way of protecting against the downside risk of climate change as well as the potential return of renewable energy investments. 

 

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Rachel Alembakis

Rachel Alembakis

Publisher/Editor at The Sustainability Report
Rachel Alembakis has published The Sustainability Report since 2011. She has more than a decade of experience writing about institutional investments and pension funds for a variety of publications.
Rachel Alembakis

Rachel Alembakis has published The Sustainability Report since 2011. She has more than a decade of experience writing about institutional investments and pension funds for a variety of publications.

Rachel Alembakis

Rachel Alembakis

Publisher/Editor at The Sustainability Report
Rachel Alembakis has published The Sustainability Report since 2011. She has more than a decade of experience writing about institutional investments and pension funds for a variety of publications.
Rachel Alembakis

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