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.
Impax 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.
The content you are trying to access is only available to subscribers. There are several options available to you if you want to view this content, from full subscriptions to temporary passes just for this article. Click here for more information.
Latest posts by Rachel Alembakis (see all)
- Fie, fi, foe, or friend? Consider the relationship between investors, boards: RIAA - November 19, 2017
- ESG integration comes into its own in fixed income portfolios: RIAA - November 19, 2017
- EVs, autonomous vehicles, transport as a service to disrupt cities, economy: RIAA - November 19, 2017