Fossil Fuels Divestment: Is It Lawful?

Abstract

This article assesses the legality of fossil fuels divesting, and highlights important differences in its legal context depending on the type of financial institution, such as university endowments, financial corporations, or sovereign wealth funds. The article focuses on the major Anglophile jurisdictions because they are either globally preeminent financial markets (United States and United Kingdom) or host large fossil fuel sectors such as oil sands (Canada) and coal mining (Australia). Divestment is likely to be lawful in many cases, depending on how it is done and the rationales. But even where the law supports their cause, divestment proponents have few legal options to challenge the decisions of financial managers who may choose not to divest.

Keywords: climate change; divestment; fossil fuels; legality