Divestment vs. Engagement: The Debate Over Climate Action and Investment Strategy

Tuesday, Sep 2, 2025 12:08 am ET1min read

Union Investment divested from ExxonMobil due to insufficient climate commitment. Divestment or engagement is debated as the most effective way to decarbonize. Divestment reduces exposure to stranded assets but is complicated and may triple management fees. Some argue divestment is necessary for a clean transition, while others believe it only helps investors build a green portfolio. The effectiveness of divestment versus engagement in achieving decarbonization remains a contentious issue.

Divestment vs. Engagement: The Debate Over Climate Action and Investment Strategy

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