Fossil Fuel Divestment: Considerations for Private Wealth Portfolios

An increasing number of private clients are contemplating scaling back or exiting their fossil fuel-concentrated holdings as governments around the world fortify plans to reduce greenhouse gas emissions amid heightened awareness around the negative effects of carbon discharges on global warming. Even as many investors have committed to the movement that is broadly referred to as fossil fuel divestment, many more have researched and decided to not pursue divestment at this time. Private clients should weigh all factors prior to making any decisions regarding divestment. Depending on each family member’s resources and beliefs, it may be feasible for each family member to choose a different path most closely aligned with his or her goals.