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Divestment outperforms conventional portfolios for the past 5 years

Is your alma mater divesting it's fossil fuel profiles? If not, maybe it's time to send them this article!

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Monday, February 16, 2015
Peter Lehner
Climate Spectator
IMAGE: Five year snapshot of FTSE's fossi fuel free indices
Five year snapshot of FTSE's fossi fuel free indices

The Independent Petroleum Association of America recently commissioned and funded a study, covered in The New York Times and elsewhere, which claimed that university endowments would suffer without fossil fuels in their portfolios. The Wall Street Journal ran an op-ed calling fossil fuel divestment a "Feel-Good Folly."

Let's look at the facts. The global indexing firm FTSE has developed several fossil fuel free indices, and has tracked performance over the past five years. Over this time period, FTSE's North American fossil fuel free index has consistently outperformed the conventional benchmark index.

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