FFI Perspectives Toggle

In Response to ExxonMobil’s Anti-Divestment Statement

On October 10, 2014, ExxonMobil published a blog post that addressed the issue of fossil fuel divestment, i.e., the reduction or elimination of investments in fossil fuel companies. In the post, Exxon refers to divestment as “a movement that is out of step with reality”. While we at FFI disagree with Exxon’s anti-divestment stance, we were pleased to see that the company explicitly states at the beginning of the post: “We can all...

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FFI’s Divestment Strategies Now Available through Parametric Portfolio Associates

We are pleased to announce that we have just licensed our index, the FFIUS, as well as The Carbon Underground 200 (CU200), our list of the top 200 public fossil fuel companies based on the carbon content of reported reserves, to Parametric Portfolio Associates, a leading global asset management firm. Our agreement with Parametric allows them to offer investments in our index, as well as any investment strategy, active or passive, screened for...

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Fossil Free Indexes US – Inside the Numbers: Part III – Mathematical Illustration

Research Brief Series Before you read this mathematical illustration, make sure you've read part III in this series. Let’s suppose we have a portfolio that contains three stocks, one of which belongs to the Carbon Underground 200 (CU 200), 2014. The return on this portfolio is equal to an average of the returns on the three stocks, where the average reflects the percentage of each stock in the portfolio. Of course the proportion of each...

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Fossil Free Indexes US – Inside the Numbers: Part III

Research Brief Series I noted previously that many people, when they hear that FFIUS is based on a negative screen applied to the S&P 500 index, conclude this screen must entail a sacrifice in expected return relative to the index. Why people have adopted this view as true is an interesting topic, but one I reserve for another post. In this post my purpose is quite narrow, specifically to show, in a simple way, why it isn’t true that...

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Announcing Our Latest Report: A Tally of CO2 Emissions Financed by CalPERS Portfolio

We are pleased to announce the release of our latest report, “The CalPERS Portfolio and Fossil Fuel Reserve-related CO2 Emissions 2004-2013.” CalPERS (the California Public Employees' Retirement System) is the nation’s largest pension fund at $301 billion dollars. The report reviews CalPERS’ share of global fossil fuel reserves. Our findings show that the financed emissions supported by CalPERS’ oil and gas holdings would be equivalent...

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