Goldman Sachs Divests from Coal Project
Saturday, February 15, 2014 (Listed under Environment) In January, investment giant, Goldman Sachs, which has already forecast that the value of the coal industry “will be gradually eroded,” recently divested its stake in a Seattle company with plans to construct the proposed Gateway Pacific coal export terminal. The project's proponents hope to ship 50 million metric tons of American coal to Asia each year, a business model that many long-view investors deem unsustainable. Oxford University recently released a study entitled, “Stranded Assets and the Fossil Fuel Divestment Campaign: what does divestment mean for the valuation of fossil fuel assets?” In it, authors Tom Swann and Richard Denniss suggest that the coal industry's tarnished reputation as a result of their colossal contribution to run-away climate change is reason enough for investors to seriously consider divesting: “The outcome of the stigmatization process, which the fossil fuel divestment campaign has now triggered, poses the most far-reaching threat to fossil fuel companies and the vast energy value chain.”
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