One of the trends sweeping the marketplace is fossil fuel free investment options. But investor beware—not everyone means the same thing. Google “fossil fuel free investing” and you’ll get a long list of mutual funds, white papers, and advocacy positions.
The recent push for fossil fuel divestment emerged in part because of advocacy by 350.org, arguing that proven fossil fuel reserves held by oil and coal companies were in fact “stranded assets” that could never be developed in a warming world. The argument continues that these stranded assets have resulted in inflated share prices. 350.org advocates divestment from the largest 200 oil and coal companies, based on carbon reserves. While many research firms have equivalent lists, the original list is maintained by Fossil Free Indexes (FFI). (more…)