Divestment is Not Enough
Jory Cohen, Inspirit’s Director of Finance and Impact Investment, wrote an opinion editorial for the The Hill Times that explains how investments can have an even greater impact when divesting is entwined with impact investing.
Read the full article here. Below is an excerpt.
There’s been a lot of talk about divesting these days.
Some investors find directly or indirectly supporting companies they deem to be destructive to the planet or its inhabitants unpalatable, whether they be arms manufacturers or fossil fuel companies. That makes good moral sense.
Liquidating positions from fossil fuel companies seems like a natural decision for climate-conscious investors, but is it enough? Divesting alone can be a knee-jerk decision that doesn’t actually solve the problem at hand.
Your investments can have an even greater impact.
Divesting needs to be entwined with impact investing, an investment philosophy that aims to generate social and environmental benefits as well as robust financial returns.
The federal government should create policies to help incentivize impact investing so Canadians can more fully participate in this sustainable investment approach, while benefiting from the social and environmental impacts.