Encouraging Institutional Investors to Divest From Fossil-Fuels

256px-Fossil_fuel_life_cycle.svgAccording to the Wall Street Journal, the D.C. Council is considering a bill that would encourage big institutional investors to divest from companies in the fossil-fuel business. This news follows efforts from individual states to fight global warming after federal efforts died along with the big climate change bill in the Senate three years ago.

Nitiin A. Khandkar is a chartered accountant with over 15 years experience in equity research. He shares his opinion about whether the potential bill is a smart move or a sign of frustration at the failure of the system to move forward with climate change strategies.

“No commercially viable alternative to fossil-fuels has yet been found,” says Khandkar. “Alternative energy sources such solar power need to be made commercially available at prices lower than fossil-fuels in order for them to be accepted universally. The bill, though well intended, appears to be a half-hearted measure. Merely asking institutional investors to exit fossil-fuel companies will not suffice. There is also the question of the manpower already employed in the fossil-fuel industry. This manpower will have to be shifted elsewhere over a period of time. In the meantime, the Government will also have to stave off political pressure from the powerful lobby of the multi-billion dollar fossil-fuel industry.”

< type="mce-text/javascript">//

Zintro has experts in every industry sector, across every job function, in every geographic region. Recently, some of the following topics have seen inquiry activity: