Around the world, institutional investors ? including pension funds, insurance companies, philanthropic endowments, and universities ? are grappling with the question of whether to divest from oil, gas, and coal companies. The reason, of course, is climate change: unless fossil-fuel consumption is cut sharply ? and phased out entirely by around 2070, in favor of zero-carbon energy such as solar power ? the world will suffer unacceptable risks from human-induced global warming. How should responsible investors behave in the face of these unprecedented risks? Divestment is indeed one answer, for several reasons. One is simple self-interest: the fossil-fuel industry will be a bad investment in a world that is shifting decisively to renewables. (Though there will be exceptions; for example, fossil-fuel development in the poorest countries will continue even after cutbacks are demanded in the rich countries, in order to advance poverty reduction.)

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