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Guest opinion: Want to help the environment? Take a look at your stocks.

Original post made on Apr 18, 2021

In a guest opinion, Mountain View resident Donna Davies writes about the process of divesting fossil fuel stocks and mutual funds.

Read the full story here Web Link posted Saturday, April 17, 2021, 8:54 AM

Comments (7)

Posted by Steven Nelson
a resident of Cuesta Park
on Apr 18, 2021 at 2:59 pm

Steven Nelson is a registered user.

There are some smaller asset fund managers that have developed a full set of different 'socially conscious' ways to diversify fund your IRA or taxable investments. My wife used Pax World Funds to manage some college, UGM funds for our kids. (they are investment advised by IMPAX Asset Management)

Warning - all investments may loose principal. Pax funds for instance may loose more (or loose relative to the S and P 500 Index) than a 'straight low overhead fee cost index fund from Vanguard). Your money - your wealth - your decision. Do you only buy a car with 'recycled steel, copper, and plastic' in it? It "would be possible' but I know of no such transportation vehicle made by any company. So - you walk everywhere local - except when you take public transportation (I know of no bicycle made of 'recyclables').

And, of course - you wouldn't dare 'Uber'. Moderation.

Divesting over a decade (for taxable equity investment) makes a lot of sense. In the UC Retirement anti-aparthide reinvestment approach - they tended to do it quicker than a decade - once the UC Regents were persuaded to act.


Posted by SRB
a resident of St. Francis Acres
on Apr 18, 2021 at 5:53 pm

SRB is a registered user.

Thanks for writing this. As you note, one challenge when divesting is to avoid taxable events. One trick I've used for divesting from some "dirty" stocks was to simply donate them. Most charities will accept donation in stocks; they get the full market value and you can write off that full market value (as charity donation) without paying a penny on stock appreciation.


Posted by Raymond
a resident of Monta Loma
on Apr 19, 2021 at 3:03 pm

Raymond is a registered user.

The most effective way to protect the planet might be to divest from China & Russia. China has scheduled zero GHG reductions through 2030, when it will consider the question.


Posted by Neighbor
a resident of Shoreline West
on Apr 19, 2021 at 3:45 pm

Neighbor is a registered user.

Thank you so much for this! Great resources that I will apply shortly.


Posted by Stephen Raillard
a resident of Cuesta Park
on Apr 19, 2021 at 4:57 pm

Stephen Raillard is a registered user.

Great article, thanks for sharing. If investors small and large invest in ways that are true to their core beliefs as people we can all really make an impact and move the needle into a more sustainable world for all.
Just one caveat: Green and ESG investing has gained quite a lot of momentum. As with everything else, it is worth "looking under the hood" and study the advertised information carefully. Quite a bit of what runs under these banners is trying to attract investors money without always showing a strong dedication to the true causes stated.


Posted by Donna Davies
a resident of Cuesta Park
on Apr 20, 2021 at 3:51 pm

Donna Davies is a registered user.

The Financial Times reported this week that American oil drillers are struggling to raise money from private-equity firms and are “dying on the vine.”

Green-minded investors have every reason to think divestment is influencing the petroleum industry.


Posted by Bruce Karney
a resident of Old Mountain View
on Apr 20, 2021 at 4:13 pm

Bruce Karney is a registered user.

The City of Mountain View divested from fossil fuel bonds several years ago. The move was championed by then-Council member Ken Rosenberg. (Like most government agencies, the City owns few, if any, individual stocks or stock funds.)


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