Thanks for this article. I am beginning to appreciate the nuance and complexity of the issue. I think what your are saying is that pretty much the only way the fossil fuel industry could be starved for cash is to have them pulled from general index funds. Short of that, "smart money" will replace any "dumb money" that withdraws (in the form of institutional endowments that divest and individual activists like me). Your point seems to be that the fossil fuel companies would prefer the smart money investors anyway because they would be less likely to make a fuss.
I take some issue with the idea that attempting to decarbonize one's own money is some sort of "virtue signal." It certainly isn't my goal. I think the thesis of my piece was actually that my own personal decarbonization has a negligible effect, and that only by creating some sort of mass movement could people move the big banks to divest and move capital away from fossil fuels. If this mass movement could reach the index fund level as you suggest, then perhaps it could tip the capital away from fossil fuels. Short of that, it seems like you are saying it could actually be counter productive.
Therefore, it does look like you are saying that there is likely some sort of tipping point for divestment, where it goes from being counterproductive to effectual, but that tipping point is not at the institutional endowment level. You are saying it would take a heck of lot of people pushing for divestment to move the index funds. Is it still a worthy goal? To try to get to that tipping point?
I like your suggestion to stay in the game to influence the funds and banks. Keeping my money in TIAA allows me to participate in any shareholder discussions as an investor. For these same reasons I am keeping my Citi and BofA cards, even as I try out the Aspiration card.
I would like to know what your best advice for people like me who want to use what little influence we have to move banks/people to climate positive solutions.
Thanks again for your article and responses to mine.
