‘No growing support’ for fossil fuel divestment: RBC

Posted by Jeff Lagerquist, ca.finance.yahoo.com

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Working with the fossil fuel industry to improve its environmental impact is seen as more effective than divesting from the emissions-heavy sector, according to RBC Global Asset Management’s latest survey on environmental, social and governance-focused (ESG) investments.

The asset management division of Canada’s largest bank found global institutional investors preferred engagement (45 per cent) over divestment (10 per cent) by a more than four-to-one margin, a slight increase from 40 per cent a year ago. However, the result comes as some major investment funds sell off oil and gas holdings in pursuit of a greener portfolio. Many of those decisions have targeted companies in Canada’s oil patch.

“Over the last three years, there has been no growing support for divestment amongst institutional investors, indicating a clear preference for engaging in dialogue with companies,” the survey’s authors wrote…read more.