Fossil Fuel Divestment: High Costs, No Environmental Benefits (Guest: Todd Kendall)
August 30, 2018
Todd Kendall, Executive Vice President of Compass Lexicon, shows that cities and states that divest their pension funds from fossil fuel holdings will cost their retirees billions of dollars while doing nothing to protect the environment.
Todd Kendall, Executive Vice President of Compass Lexicon, has analyzed 50 years of returns from 11 huge public pension funds in California, New York and Chicago. They show that if progressive politicians are lured by the siren call of anti-fossil fuel activists, and if climate alarmists have their way by divesting their public employee pension funds of fossil fuels, they will cost beneficiaries and retirees billions to trillions of dollars in returns. Many of these funds are already underfunded, so it's akin to poking additional holes in an already leaking water bucket during a drought. In addition, divestment won't alter fossil fuel companies behavior, so it won't protect the environment.