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THE TOOLS

Resource Detail

What is divestment?

Article

UK Divest

PART 1: The Purposeful Investor

Your Capital And the Power of Generosity

Considers the financial and ethical benefits of divesting from fossil fuels and to explore how divestment can mitigate climate risks and enhance portfolio returns.

UK Divest’s article “What is divestment?” defines divestment as removing unethical stocks, bonds or funds—particularly fossil-fuel assets—and argues it is both an ethical imperative (climate justice, human rights) and a financially prudent move given declining fossil-fuel valuations and rising renewables; it documents widespread institutional commitments in the UK (universities, faith groups, local pension funds and the Nest scheme) and sets out clear asks for institutions to divest. This reference is included in PART 1: The Purposeful Investor — chapter “Your Capital And the Power of Generosity” because it provides a concrete, values-driven strategy for aligning one’s financial capital with purpose, illustrates the power of collective action to shift industry influence, and offers practical evidence and rationale readers can use when reorienting investments toward ethical and impact-led choices.

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