Fossil Fuel Free Investing

For nearly three decades, Clean Yield Asset Management has managed fossil fuel-free portfolios for our clients who requested this screen. In recent years, our position has evolved to one of embracing divestment as the right strategy for every portfolio we manage.

We’re bearish about the long-term financial prospects for fossil fuel companies. And of equal importance is that oil, gas, and coal companies exercise an undue and dangerous influence on our national energy policy. The divestment movement is a direct and powerful challenge to their power and influence.

“If it’s wrong to wreck the climate, then it’s wrong to profit from that wreckage.” ~ Bill McKibben

In 2010, we removed companies involved in fracking from our “buy” list. And when the growing fossil fuel divestment movement sprang into being in the fall of 2012, we became inspired to transition out of fossil fuels and to actively lobby public institutions to divest. Clean Yield has since repeatedly testified in support of legislation calling for the Vermont and Massachusetts state pension funds to divest.

Clean Yield will not purchase stock in companies that are materially involved in

  • fossil fuel extraction, exploration, production and refining;
  • production of electric power generated primarily by coal, oil, gas, or nuclear fuels; or
  • hydraulic fracturing (fracking) of oil and gas shale.

Except for positions held for the purpose of filing shareholder resolutions, we will actively transition clients’ portfolios to becoming fossil free in accordance with this definition.

Some Clean Yield client portfolios transferred to our management include securities that do not meet our screens. Taxes and other considerations may cause us to retain these “legacy” securities. In the mean time, we may use the client’s position as a basis to enter dialogue with companies or introduce shareholder resolutions on the client’s behalf.