Giving Compass' Take:
- Climate activists are encouraging divestment strategies to fight climate change by targeting financial firms invested in extractive and fossil fuel industries.
- Reshaping finance through divestment can help drive meaningful change when fighting for climate justice. In what ways can donors encourage divestment?
- Learn more about advancing the divestment movement.
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In recent years, a growing movement to achieve climate justice has connected the root cause of climate change not just with greenhouse gases but also with a more entrenched, insidious foe: capitalism. The United States supports a system that allows a few corporations and people to earn money off climate degradation, mainly through the extraction and proliferation of fossil fuels, such as coal or gas. And the very people who are tasked with regulating these industries, like federal elected officials, continue to choose not to. Time is running out to curb emissions and restore balance to global ecosystems, which is why front-line land defenders and climate activists are going straight to the source of climate chaos: financial firms.
The movement is called “divestment,” and it’s growing both inside and outside financial institutions’ walls. The idea is simple: Pull money, talent, and public approval away from banks and financial institutions that invest in fossil fuel extraction. Most often, this comes in the form of grassroots student-led campaigns at universities and colleges, as was the case with the Harvard students whose protests convinced the president and board of trustees to divest its $42 billion endowment from fossil fuel-related investments.
Divestment first emerged as a strategy in the 1980s in the fight against South African apartheid. Environmental activist and founder of 350.org Bill McKibben was one of the first major U.S. figures to recycle the idea to apply to universities and financial firms, outlining the case for divestment in a 2013 Rolling Stone piece. “The logic went something like this: Most people don’t live near a coal mine [or] oil pipeline, but everyone is near some pot of money—their college endowment, their church pension fund, their local pension fund in their community,” McKibben says. “Those are all sites where you could take effective action about climate change.”
Read the full article about divestment by Ray Levy Uyeda at YES! Magazine.