UK’s National Trust to sell off fossil fuel investments worth £45 million, says New Scientist

In the next year, the conservation group expects to have divested the £45 million it has invested in fossil fuel companies including BP, Shell and Total, and to have fully divested within three years. “We understand that action doesn’t happen overnight,” said Peter Vermeulen, the charity’s Chief Financial Officer. “But three years on from the Paris climate deal, we are still not seeing evidence of fossil fuel companies putting enough capital in low carbon investments.”

The move will serve as a criticism of companies such as Shell, which has pushed the fact it spends approximately US$2 billion of its annual US$25 billion capital investment on low carbon technology as a sign it is taking clean energy seriously.

Vermeulen pointed to research that shows major oil companies are, on average, spending just 1% of capital expenditure on low carbon investments. “If you’re going to be a relevant player in 10 years’ time, it needs to be the other way around.”

Green investment

He added that the charity still believed in shareholder engagement with companies. “We very strongly believe in engagement. Where engagement doesn’t work, we will divest.”

The National Trust will now direct approximately £25 million into green energy firms and companies with strong environmental policies that would not be able to start or grow without the capital. Investments have already been made in a wind power and battery technology company.

Campaigners for fossil fuel divestment have welcomed the move. Anna Vickerstaff of 350.org said: “This is a welcome, but belated move from the National Trust.” The divestment is one of the largest by a UK organisation, eclipsing previous sell-offs such as the Church of England divesting £12 million from fossil fuel firms in 2015.

Read the article online at: https://www.energyglobal.com/bioenergy/08072019/uks-national-trust-to-sell-off-fossil-fuel-investments-worth-45-million-says-new-scientist/