The truth behind divestment at public and private firms

The transition to a clean energy economy is only beginning, but its reverberations are already being felt in global markets. Institutional investors like the Caisse de dépot et placement du Quebec are divesting from fossil fuel companies, and divestment strategies are one factor in the drop in the share prices of fossil fuel companies, according to Sebastien Betermier, Associate Professor of Finance at Desautels. However, the environmental impact of this is unknown, as privately run investment firms are less transparent and could continue to invest in companies and projects that pollute heavily.