Divestment Fever Spreads as ‘Eco Radicals at Goldman Sachs’ Downgrade Exxon Stock to ‘Sell’ Status

Climate campaigners have been calling for years on companies and shareholders to divest from fossil fuels for the good of the planet, and a new “sell” rating from Goldman Sachs for oil and gas giant Exxon confirms divestment makes good financial sense for investers as well. (Photo: Friends of the Earth Scotland/Flickr/cc)

Three days after CNBC host Jim Cramer pronounced fossil fuel investments as being “in the death knell phase,” Goldman Sachs on Monday downgraded its stock assessment for ExxonMobil, advising investors to sell their shares of the oil and gas giant.

The Wall Street firm changed its “neutral” rating to “sell” following its fourth quarter earnings reports which showed Exxon’s earnings falling from $6 billion in 2018 to $5.6 billion last year.

The firm found no “compelling case” for holding on to Exxon’s stocks, according to CNBC, and advised investors that “more compelling returns opportunities exist both among the global majors and global large cap stocks outside of energy.”

As author and 350.org co-founder Bill McKibben tweeted, Goldman Sachs’ decision confirms that aside from helping to “preserve a livable planet,” another reason to divest fossil fuel stocks is “so that you won’t lose your money.”

Goldman Sachs predicted that Exxon will meet just half of its targeted returns by 2025.

The firm’s prediction is just the latest indication that the financial sector and other profit-driven entities are beginning to see fossil fuels as an impractical investment.

“A reminder that capital often doesn’t walk, it runs.”
—Nathan Lemphers, Smart Prosperity Institute
As Common Dreams reported last November, analysts at Toronto-based firm Corporate Knights found that investing in fossil fuels cost pension funds in California and Colorado cost retirees $19 billion collectively over a decade.

A number of cities have divested from Wells Fargo for its funding of fossil fuel projects, and as Common Dreams reported Friday, Cramer announced on CNBC‘s “Squawk Box” that he is “done” with fossil fuel investments, suggesting oil, gas, and coal have become relics of the past […]

via Divestment Fever Spreads as ‘Eco Radicals at Goldman Sachs’ Downgrade Exxon Stock to ‘Sell’ Status

5 thoughts on “Divestment Fever Spreads as ‘Eco Radicals at Goldman Sachs’ Downgrade Exxon Stock to ‘Sell’ Status

  1. “[Goldman Sachs’s] prediction is just the latest indication that the financial sector and other profit-driven entities are beginning to see fossil fuels as an impractical investment.”
    ~ Is this for real, Dr. Bramhall? Are we finally making a break-through?

    Like

    • I suspect it’s a tiny bit of hype. The statement from Goldman Sachs is stronger than a prediction – it’s a recommendation to it’s clients. However I believe there’s a deeper agenda here that Cory Morningstar writes about in her series The Manufacture of Greta Thunberg. The billionaires at the World Economic Forum refer to it as the Fourth Industrial Revolution and it involves an effort to get investors to shift their shareholdings from fossil fuels to a new brand of investments involving a new capitalism based on financializing nature and ecosystem services (patenting and commodifying nature basically) and increasing exploitation of third world countries with rich deposits in lithium and rare earthy minerals.

      So it’s a breakthrough, yes, but not necessarily a good one.

      Like

      • Quote: “So it’s a breakthrough, yes, but not necessarily a good one.” I totally agree with this conclusion. When a planetary arch-criminal recommends its millionaire/billionaire investors switch investments from one form of energy use to another one can only conclude it’s on behalf of a dark agenda. These psychopaths cannot possibly do anything good, not even accidentally. They are predators and everything they do is actuarially designed to increase their share of the victimization of people and the planet. Well said, Dr. B.

        Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.