Fossil Free Investing
In addition to bank loans, fossil fuel companies fund expansion with bonds and selling equity. By switching your investments to fossil-free alternatives, you help pull capital from these companies while aligning your money with your values. Funds listed below also exclude violators of the UN Global Compact, manufactures of tobacco products, manufactures of civilian firearms and the highest carbon emitting companies in each sector. This is a directory of fossil free investments based on publicly available information and does not constitute advice or endorsement. Although we do our best to keep the content up to date, we are not responsible for any errors.
Why Divest
Divestment over shareholder engagement
Canadian fund providers, such as NEI, have been engaging with oil and gas companies for over 15 years, yet those companies have yet to develop transition plans for a renewable energy future, as shown in this report by Environmental Defence. We are at a critical point in the climate emergency and incrementalism is no longer acceptable. If a fossil fuel company decides to build a renewable energy project, they can still use a green bond from the funds on this list if the money is segmented.
Historical returns
By factoring the risk of each asset, funds using environmental, social and governance criteria typically show higher long-term returns. Analysis shows that funds without fossil-fuel companies perform better than their conventional counterparts. Furthermore, to stop warming beyond 1.5°C, oil and gas companies will be left with stranded assets that haven't been fully factored into their stock prices. Investing in fossil fuel companies is betting against a livable future.
In a Branch
Pre-Built Mutual Fund Portfolios
Specialized Mutual Funds (Specific Region or Asset Type)
Online (Managed)
Robo-Advisor Services
Self-Directed
ETF Portfolios
Specialized ETFs (Specific Region or Asset Type)
US Dollar ETFs
As You Sow has created a list of US Dollar exchange traded funds listed on the NYSE and NASDAQ that meet a similar criteria to what we use. As a Canadian, you are able to purchase these ETFs on all major online brokerage platforms and from some financial advisors.