Grantham study: Fossil fuel divestment cost less than 0.5% in performance
Richard Lawrence · Sustainable Investing 6: Richard Lawrence - ESG Integration at Overlook (Capital Allocators, EP.144) · Jun 25, 2020 · at 22:56
Richard Lawrence, founder of Overlook Investments, discusses whether excluding carbon-intensive and fossil fuel companies incurs a meaningful performance penalty.
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“Jeremy Grantham put out a document three or four years ago that said there was almost no cost to that exclusion. Okay, and this was when the divestment move really happened. People were extremely concerned about just the divestment point of view. So he went from 1926 forward, took out all fossil fuel companies, And the decrease in your performance was less than .5 percentage point over that whole entire period, or possibly even less.”
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