Active Dis-Investing From Fossil Fuel to Renewables

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Feb. 14 (Bloomberg) -- Ellen Dorsey, executive director at Wallace Global Fund, discusses divesting fossil fuel investments and backing renewable energy on Bloomberg Television’s “Market Makers.”

Getting companies to do what they want to buy their shares.

You spoke with social activist investors about what to avoid because you don't believe in western companies are doing.

I think that the pace and scope and magnitude of the climate crisis mandates that we act fast and dramatically.

So, i were present one of close to 20 foundations that are committed to getting out of fossil fuels and actually moving our assets into renewables and clean tech and the climate solutions that the world dramatically needs.

How do you think people in wet pension funds feel about that?

Even if they agree with you, what is so important with them is the return they're getting.

Actually, we are doing this not only because of the ethical risks of staying in fossil fuels , but also because of the financial risks.

We are committed to both protecting our returns and moving our investments into the energy sources of the future.

There is very powerful arguments to be made about the carbon bubble and the risk and staying in fossil fuels.

Even if you are right fundamentally come in terms of returns today.

The investments that they may be and could be winning investm ents.

We are virtually 100% out of fossil fuels and invested in renewables and clean tech.

We have been doing phenomenally over the last couple of years being our benchmark.

We have the returns now.

Over time, those returns and the investments that we are making are the place to be.

I believe the global fund began four years ago.

You were an early investor in tesla -- are you introducing volatility into your portfolio by focusing on those kind of companies?

Over time, the volatility is coming from fossil fuels.

The opportunity to be invested in the climate solutions of now and of the future is the right and prudent thing to do to for our portfolio.

We went through quite a. of volatility.

The track record -- we have done quite well.

We believe we will continue to do quite well.

Is more impactful if you were a shareholder to make companies make certain moves?

Are you in a disadvantaged as it should because you're are not a shareholder like carl?

You'll have to have 100 million shares of exxon mobil to engage in shareholder activism.

There are couple battery shareholder campaigns that call for disclosure of stranded asset risks of the fossil fuel industries that would drop down the x bennett or is that they are -- down the capital expenditures.

We need to turn this around.

We need to do it quickly.

It has been estimated that there needs to be $1 trillion annually in investments in clean tech and renewables to orchestrate the global energy transition.

I believe that philanthropy and other institutional investors could be playing a powerful role in migrating their investments into what the globe needs and what science the man's. i wonder if the exxon mobil's of the world, they responded to you, notice what they've been doing -- what you've been doing.

They have not responded to us directly.

I am more concerned that we are responsive to the climate and to the people of the world that will be so impacted and so apocalypticly impacted in the future.

Exxon mobil has an opportunity to develop a business model that keeps them below two degrees celsius warming.

They should do that.

Right now, we want to put our investments into the renewables because the on fossil fuels, they are not committed to the transition.

Thank you so much.

She is the executive director of

This text has been automatically generated. It may not be 100% accurate.


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