Belief in the power of engagement over divestment has been a core tenet for institutional investors when it comes to the systemically big polluters. The world’s largest investor engagement initiative, Climate Action 100+ (CA100+), is built on the premise that the world’s largest polluting firms can be nudged towards low-carbon futures, in part, through investor stewardship.
To divest is to abdicate that duty, potentially handing ownership to a less scrupulous investor, as Simiso Nzima, Investment Director & Head of Corporate Governance for Global Equity, at Californian pension giant CalPERS recently told RI: “When an investor divests, they lose their seat at the table, and hence their ability to influence and drive change”.
But are we beginning to see signs that some big investors’ faith is weakening, particularly when it comes to the ability of fossil fuel firms to transition to a low-carbon future?
Last week saw a raft of big divestme…