The basics of divestment: How to make your portfolios more environmentally friendly

Having the right tools and mindset crucial

Investors often consider 'divesting' their portfolios of fossil fuel companies as a way to address climate change. How should they approach this decision?

A first step is to decide what types of firms qualify for divestment. Should divestment focus on those that produce fossil fuels? Or firms that burn them, releasing global warming gases into the atmosphere? Are firms that support the fossil fuel supply chain in or out? Coal ports? Gas pipelines? Roadside retailers of petrol ('gas')? Jupiter AM adds to fossil fuel transition pressure on Barclays Burning fossil fuels is a major part of industries as diverse as energy generation, steelmaking and aviation. Are these all candidates for divestment too? Many of the largest organisations invo...