Healthcare Organizations Urge Fossil Fuel Divestment

February 6, 2015 – A coalition of health groups in the United Kingdom have come out with a strong recommendation on divestment in shares of fossil fuel companies. In a report entitled, “Unhealthy Investments: Fossil Fuel Investment and the UK Health Community,” the authors argue that “that unmitigated climate change poses grave risks to human health,” and that “health organisations in the UK and elsewhere should end investment in the 200 largest publicly-listed fossil fuel companies, over a period of 5 years.”

The report is the work of Medact, Healthy Planet UK, the Climate and Health Council, Medsin & the Centre for Sustainable Healthcare. In the report’s executive summary the authors refer to climate change as the biggest global health threat of the 21st Century and observe that warming limited to 2 Celsius (3.6 Fahrenheit) degrees requires fossil fuel companies to limit production so that only 20% of current known reserves ever get burned. In addition the authors point out the health impacts of air pollution from the burning of fossil fuels, calling the practice “one of the world’s biggest killers.”

Divestment is seen as a moral stand. For the health sector to continue to hold stocks in an industry that harms health runs contradictory to the responsibilities to do no harm.

Among the recommendations to healthcare providers are the following:

1. An immediate review of direct and indirect investments in the top 200 publicly-listed fossil fuel companies with a commitment of total transparency to all those working for providers in relation to these investments.
2. A commitment to no new investments and a freeze on all existing fossil fuel investments.
3. A commitment to selling all direct equity holdings in fossil fuel companies within 1-2 years.
4. A commitment to fully divest from fossil fuels within 5 years including indirect investments such as those controlled by bank fund managers. In the event bank fund managers are unable to transfer capital to alternative funds which exclude fossil fuels healthcare providers will commit to finding alternative investment providers.
5. A commitment to redirect investment in renewable energy and other sustainable industries that protect and promote public health and a healthy environment.

The report follows recent comments made by Mark Carney, Governor of the Bank of England, who in October of last year at a World Bank meeting openly stated that the world faces a near future when fossil fuel reserves will be declared unburnable.