Thanks for this Dario. And thanks for highlighting the need to both divest and invest if we are to help build the future we need. What fascinates me in the decisions by Norway and the Californian state pension system is that normally you would expect investors to sell near the top of a market and not during a downturn. That major asset owners are willing to sell in such conditions suggests one of two things:
1. The reputational risk of investing in coal has become so great that they are willing to take a financial loss;
2. They think that the downward slide of coal stocks is not so much a cyclical movement as an irreversible trend - this is the beginning of the end for coal as a fuel.
Either way this is good news for the environment and a major victory for the divest-invest movement.
COMMENTS
BY Rufo Quintavalle
ON September 10, 2015 05:23 AM
Thanks for this Dario. And thanks for highlighting the need to both divest and invest if we are to help build the future we need. What fascinates me in the decisions by Norway and the Californian state pension system is that normally you would expect investors to sell near the top of a market and not during a downturn. That major asset owners are willing to sell in such conditions suggests one of two things:
1. The reputational risk of investing in coal has become so great that they are willing to take a financial loss;
2. They think that the downward slide of coal stocks is not so much a cyclical movement as an irreversible trend - this is the beginning of the end for coal as a fuel.
Either way this is good news for the environment and a major victory for the divest-invest movement.