Connect with us

Hi, what are you looking for?


Green Economy

Guardian Media Group To Sell All Fossil Fuel Assets

The Guardian Media Group, publisher of the award-winning newspapers Guardian and Observer, has announced that it will sell off all fossil fuel assets in its £800 million investment portfolio.

The Guardian Building WindowNeil Berkett, Chairman of the Guardian Media Group, justified the decision citing financial and ethical reasons. The share of fossil fuel assets in GMG’s investment portfolio is in ‘low, single digits’, but the divestment decision is in line with the United Nation’s campaign that argues that fossil fuel assets and investments would be worthless if government’s around the world starting taking actions to reduce greenhouse gas emissions.

Historically, alternative investment avenues have yielded better returns than natural resources. As Berkett explained in an article published on the Guardian, the S&P Global Water Index gave an annualised return of 13.4% over the last 10 years, outperforming traditional natural resources as well as the broad global equity index. Similarly, the FTSE Environmental Technology 50 Index has yielded 6.9% annually over the last 10 years, higher than absolute returns generated by commodity futures.

The decision was announced a day after a deadline for countries to announce post-2020 emission reduction targets central to the Paris climate change agreement expired. By 1 April, 7 countries, including the EU, had submitted targets to reduce greenhouse gas (GHG) emissions. Many more countries are expected to submit such mitigation targets over the course of the year. If a Paris deal is indeed agreed upon, the fossil fuel assets would most likely be the first targets of countries around the world to cut GHG emissions, thus driving their value down.

So, the Guardian’s decision seems not only based on ethics and financial gain, but common sense as well!

Guardian Media Group is not alone in adopting this strategy. More than 180 groups have announced similar measures to shed fossil fuel assets from their investment portfolios. Syracuse University announced that it will divest $1.18 billion worth of investments in fossil fuels-linked assets. Before that, the Rockefeller Brothers Fund divested all of its fossil fuel assets, worth about $860 million. And recently, the world’s largest sovereign wealth fund — Norway’s Government Pension Fund Global — announced that it had sold off stake in 53 coal companies from around the world, including the world’s largest coal mining company, Coal India Limited.

Guardian Media Group has also called upon 2 of the world’s biggest charitable funds — the Bill and Melinda Gates Foundation and the Wellcome Trust — to divest their holdings in assets linked to fossil fuels.

Image Credit: Bryantbob | CC-BY-SA 3.0

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...
If you like what we do and want to support us, please chip in a bit monthly via PayPal or Patreon to help our team do what we do! Thank you!
Written By

Mridul currently works as Head-News & Data at Climate Connect Limited, a market research and analytics firm in the renewable energy and carbon markets domain. He earned his Master’s in Technology degree from The Energy & Resources Institute in Renewable Energy Engineering and Management. He also has a bachelor’s degree in Environmental Engineering. Mridul has a keen interest in renewable energy sector in India and emerging carbon markets like China and Australia.


You May Also Like

Clean Power

Governors Now Face Question: Which State Becomes the Nation’s Offshore Wind Manufacturing Center?

Climate Change

The case for divestment grows louder as evidence shows that individuals with divested portfolios “outperformed their benchmarks.”

Clean Power

There has been a lot of discussion on the web on choosing between solar PV systems or trees in order to reduce one’s carbon...

Climate Change

Which countries are ready to submit Nationally Determined Contributions as part of commitments to the Paris Agreement?

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.