What is divestment?

What is divestment?

A:

When you invest your money, you might buy stocks, bonds, or other investments that generate income for you. Universities and colleges, as well as religious organizations, retirement funds, and other institutions put billions of dollars into these same kinds of investments to generate income to help run their institutions.

Divestment is the opposite of an investment — it simply means getting rid of stocks, bonds, or investment funds that are unethical or morally ambiguous. Fossil fuel investments are a risk for investors and the planet -– that’s why we’re calling on institutions to divest from these companies.

There have been a handful of successful divestment campaigns in recent history, including Darfur, Tobacco, and others, but the largest and most impactful one came to a head around the issue of South African Apartheid. By the mid-1980s, 155 campuses — including some of the most famous in the country — had divested from companies doing business in South Africa. 26 state governments, 22 counties, and 90 cities, including some of the nation’s biggest, took their money from multinationals that did business in the country. The South African divestment campaign helped break the back of the Apartheid government and usher in an era of democracy and equality.

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