Fossil Fuel Divestment is Expensive, Hurts Pensions and Has ZERO Impact on Climate Change
A new report commissioned by the Vermont Pension Investment Committee and conducted by the Pension Consulting Alliance confirms what many of us already knew: divestment would be costly, will hurt pensioners – and will have no tangible effect on climate change.
The report was commissioned after legislative proposals were advanced to mandate state pension divestment in fossil fuels.
The conclusion, from the Executive Summary of the Report:
- “Increase costs”
- “Add diversification and technological change risks to VPIC’s portfolio”
- “Only effect potential stranded assets risk, not other material climate change risks and opportunities”
- “Leave unaffected the financial situation of companies offering alternatives to fossil fuels”
- “Conflict with VPICs governance in its asset allocation, equity investment strategy, and proxy voting and direct corporate engagement”
- “Introduce a slippery slope of potential for other restrictions on VPIC’s investment universe whose potential benefits have not been shown to outweigh the potential harm to the VPIC portfolio”
You can read the entire report yourself by visiting VermontTreasurer.gov.