Jeremy Grantham (GMO) is one of the most admired institutional investors and thinkers in the world, and with good reason. He is also a passionate environmentalist who has put himself at risk of arrest for taking part in various civil disobedience demonstrations and protests over the years. The 79 year old investor gave the keynote presentation at last week’s Morningstar Investment Conference and he chose to make the case for why ESG investing might be about much more than just asserting our values.
This quote in particular should get your attention:
“You can divest from oil–or about anything else–without much consequence for performance.” Yet today, the rationale for divesting from fossil fuels isn’t just about aligning with an investor’s values, it reflects a forward-looking view that these industries are in long-term decline and their reserves will become stranded assets.
“Oil may have a last hurrah before the electric cars arrive, but when they do, there will be some tough times for a long time.”
Read the rest of what he had to say here: