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Climate Change

Global exodus from fossil fuel holdings tops 1,500 institutions

Market pressures mount for corporations to go green

Excess gas is burned at an oil field in Basra, Iraq. Investors are increasingly divesting assets tied to fossil fuel.   © Reuters

TOKYO -- More than 1,500 pension funds, universities and other organizations around the world have announced that they will divest from fossil fuel assets, doubling from five years earlier and underscoring the surge in sustainable investing.

These institutions have roughly $40 trillion in assets under management. The threat of divestment is one way to pressure corporations into addressing environmental, social and corporate governance issues. Divesting also shields holdings from the ESG risk of the asset values dropping when other investors pull out.

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