A San Francisco-based capital management firm is making an economic case for fossil fuel divestment, arguing that the industry will be in decline as soon as 2030 and clean energy is poised to take its place.
“The innovations required to put world economies on a long-term sustainable path largely exist today,” writes analyst Garvin Jabusch on behalf of Shelton Capital Management. “Through promoting true sustainability solutions in materials and energy, we can indeed maintain a healthy, thriving biosphere, all while growing our economies and potentially improving standards of living everywhere, for everyone.”
The paper stresses the opportunities in clean energy investment, while pointing to growing investment risks in fossil fuels. “If fiduciaries own fossil fuels, they own global warming, meaning they own the primary systemic risk to the long-term well-being of the global economy and civilization,” Jabusch notes. “Moreover, they own a power source that is having an increasingly tough time competing” against increasingly affordable renewables.
“This runs exactly contrary to the fiduciary responsibility to safeguard their members’ economic security.”