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Pension funds and private companies now represent 95% of the assets committed to divestment, but university commitments have also risen rapidly, tripling in the last year, with notable announcements coming from the universities of California, Oxford and Syracuse.
Traditionally, many hedge-fund managers have collected twenty per cent of a fund's profits, and they have also kept two per cent of the assets committed to a fund, regardless of the outcome of their bets.
On a day when more than 800 institutions and individual investors, controlling more than $50bn£34bnbn) in assets, committed to divest, the Rockefellers were the marquee name – delivering a jolt of energy to the fossil fuel divestment movement that had been steadily expanding from college campuses to philanthropies and pension funds.
For example, according to the 2014 Global Sustainable Investment Review, assets committed to some form of environmental, social and governance screening (ESG) grew by in the United States by 76percentt in just two years, from 2012-2014 -- from $3.74 trillion to $6.57 trillion, or one in six dollars invested.
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By the time of the Paris climate summit, more than 500 individuals and institutions in control of more than $3.4tn in assets had committed to some form of divestment, according to Ellen Dorsey, the director of the Wallace Global Fund, who has championed the movement.
So far, more than 280 global investors and corporations managing some $90 trillion of assets have committed to supporting the TFCD's voluntary recommendations.
Fossil Fuel Divestiture: According to the non-profit 350.org, more than 500 institutional investors, representing $3.4 trillion in assets, have committed to divest from fossil fuels.
Over in the investment world, institutions with over US$10 trillion in assets have committed to publish a 'carbon footprint' of their portfolio - and a leading group is going further by taking action to decarbonise their portfolios across US$600 billion of assets.
Next, by November over $3.4 trillion of assets had committed to divest out of fossil-fuels and invest in a new economy, supported by a diversity of voices from Christiana Figueres, HRH Prince of Wales, Leonardo Di Caprio, Desmond Tutu, Mark Carney and the Hip Hop Hope Caucus.
Collateral refers to the assets committed by borrowers to a lender as security for debt payment (Gitman, 2003).
Investors managing over $3.4tn of assets have already committed to fossil fuel divestment, including Norway's sovereign wealth fund, the world's largest.
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