U.K.’s National Trust to Cut Fossil Fuels From $1.3 Billion Fund

(Bloomberg) --

The charity looking after Britain's historic stately homes and archaeological remains will sell all its stakes in companies profiting from fossil fuels, making it the latest investor to turn away from companies blamed for damaging the planet.

The National Trust has more than 1 billion pounds ($1.3 billion) invested in the stock market and over time has shifted its strategy toward investments that reduce the carbon footprint of its portfolio. New measures announced on Thursday involve the charity divesting from all fossil-fuel companies within three years and seeking ways to back green start ups.

Banks from Commerzbank AG to Societe Generale SA have announced that they will forgo direct investments in coal, while Legal & General Investment Management in the U.K. has started selling its shares in America's largest oil company Exxon Mobil Corp. because it isn't doing enough to address climate change.

“Many organizations have been working hard to persuade fossil fuel companies to invest in green alternatives,” said Peter Vermeulen, the charity's chief financial officer. “These companies have made insufficient progress and now we have decided to divest from fossil fuel companies.”

While the charity set a three-year limit to complete the divestment. Vermuelen expects much of the work to be complete in the next 12 months.

The trust is Europe's largest conservation charity and looks after 780 miles of coastline, 248,000 hectares of land and more than 500 historic houses, castles, monuments, gardens, parks and nature reserves.

To contact the reporter on this story: Lars Paulsson in London at lpaulsson@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net, Andrew Reierson

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