In that largest divestment out of oil and gas companies yet, the Guardian Media Group announced it is selling 100 percent of their assets in fossil fuels out of their investment fund of over £800 million, or nearly $1.2 billion.
They didn't do it entirely out of the goodness of their hearts—according to Guardian Media Group Chair Neil Berkett, it turns out divesting funds from fossil fuels is a smart business decision.
Berkett said fossil fuel assets had performed relatively poorly in recent years and were threatened by future climate change action, while an ethical fund already held by GMG had been a “stellar” performer and renewable energy was growing strongly. “This means we can adopt socially responsible investment criteria without putting at risk the core purpose of GMG’s investment funds: to generate long-term returns that guarantee the financial future and editorial independence of the Guardian in perpetuity,” he said.
This keeps with the trend of businesses and universities diverting their funds lately:
The Guardian’s Keep it in the Ground campaign is asking the world’s two biggest charitable funds – the Bill and Melinda Gates Foundation and the Wellcome Trust - to divest their endowments from all fossil fuels. Over 180 groups around the world have already taken this step, including Syracuse University, which on Tuesday committed to divesting its $1.18bn (£799m) endowment. Previously, the largest fund to divest from all fossil fuels was the Rockefeller Brothers Fund ($860m (£582m)), a fortune that originated from the company that became ExxonMobil. Others, including the world’s largest sovereign wealth fund, held by Norway, have divested from coal companies.
This is huge news and so encouraging to see. Kudos to Guardian Media Group for lending its weight in the battle of climate change