Understanding Divestment: A Guide to Socially Responsible Investing

Divestment is the process of selling or disposing of an asset or investment, especially one that is considered to be socially or environmentally harmful. The term is often used in the context of fossil fuel divestment, which involves institutions and individuals selling off their investments in companies that extract, produce, or trade fossil fuels in order to reduce their carbon footprint and contribute to efforts to combat climate change.
Divestment can also refer to the act of removing one's support or endorsement from a particular company, organization, or activity. For example, a person may choose to divest themselves of a certain brand or product if they do not align with their values or beliefs.
The goal of divestment is often to bring about social or environmental change by reducing the financial incentives for companies to engage in harmful practices, and to encourage more sustainable and responsible business practices. Divestment can be an effective way to bring attention to issues and to put pressure on companies and governments to make changes.