I can’t find the article but I read something (an economics paper) suggesting that charitable trusts should invest in the companies most opposed to their mission (e.g. oil and gas for a climate change charity) to:
a) try to sabotage the companies via voting
b) hedge against the success of the companies (e.g. if oil and gas is still making a ton of money in 10 years, the climate change charity would than have likely outperformed the market and would have more money to fight back—and if the oil and gas companies go out of business, the climate change charity would not need the money because they would have already won the fight).
thanks for this! Yes, this is a common discussion in sustainable finance at the moment, whether it is better to divest from such companies or to invest in them and influence their decision making via voting.
We have opted for ESG and SRI investment funds that exclude these companies because the two groups involved in our donation system, donors and the charities, often desire this.
I can’t find the article but I read something (an economics paper) suggesting that charitable trusts should invest in the companies most opposed to their mission (e.g. oil and gas for a climate change charity) to:
a) try to sabotage the companies via voting
b) hedge against the success of the companies (e.g. if oil and gas is still making a ton of money in 10 years, the climate change charity would than have likely outperformed the market and would have more money to fight back—and if the oil and gas companies go out of business, the climate change charity would not need the money because they would have already won the fight).
You should look into that.
thanks for this! Yes, this is a common discussion in sustainable finance at the moment, whether it is better to divest from such companies or to invest in them and influence their decision making via voting.
We have opted for ESG and SRI investment funds that exclude these companies because the two groups involved in our donation system, donors and the charities, often desire this.
best regards,
Rik