Climate change threatens the livability of our planet, impacting food supplies, human health, infrastructure and security for all of us, but especially for the poor. The World Bank reported in 2015, “Climate change hits the poorest people the hardest, those living in vulnerable areas with the fewest resources to help them adapt or recover quickly from shocks.”
That is why many of us feel a moral obligation to bring our concern for climate change to bear on our investments, including our IRA’s, and 401K’s. We have come to realize that investing in companies that consume and extract fossil fuels conflicts with our values, with our desire to protect the planet and the poor.
Not only do fossil fuel companies contribute to climate change, but also these companies may be bad investments for the long haul. Analysts point out that stocks of these companies may be quite overvalued because the companies count as assets oil and gas reserves that may never be extracted as carbon emissions regulations evolve. Divesting from fossil fuel companies makes moral and economic sense for investors.
In the links below we share our personal stories of divesting our retirement accounts from fossil fuels.