Divestment and Net Zero: What it means for your Financial Institution

Global Risk Institute

Plants on piles of Euro coins


The impact of fossil fuels on climate change has prompted discussions around risk management practices and asset valuations. Fossil fuel divestment is an option that some consider to limit climate change, accelerate the transition to low-carbon energy systems, and mitigate climate-related financial risks. If considering fossil fuel holdings and potential implications for divestment, investors should consider the risks and their fiduciary duty. Although Canadian financial services may have different motivations for divestment, it can help mitigate climate risks and promote sustainability.