| Jul 13, 2015 |OK, I admit, the title is not exactly true. But two reasons just did not sound like enough to grab your attention. They’re both very good ones and we will end up with five at the end:
1) For the planet . . . if you believe Climate Change is a reality.
2) For your wallet . . . and you don’t even have to fully subscribe to the dire predictions made by many about the impacts a warming earth would have.
For the Planet:
Last year the Intergovernmental Panel on Climate Change warned that giant oil and coal companies will have to leave roughly 80% of their reserves in the ground in order to avoid catastrophic effects on the environment. Currently these companies are planning to extract, sell and promote the use of these vast reserves. According to the scientists, this process alone will be enough to cause irreversible environmental destruction.
For your wallet (the other 4 reasons to consider divesting):
My business is investing and financial planning. Therefore my focus and expertise is naturally directed toward the investment impact of the holdings I select in portfolios.
2a) Stranded Assets – See above.
Fossil fuel companies are counting their underground reserves as positive assets on their balance sheets. If they are somehow prevented from ever accessing these assets, then their removal from company books will have a dramatic effect on share prices. I do not want to own these companies if and when this occurs. CLICK HERE TO READ MORE
CFP®, ChFC® Financial Advisor
Jack Schniepp founded Cascade Financial Strategies to provide comprehensive financial planning and investment management to families, individuals, small businesses, and non-profit organizations.