Where are my savings going? Looking at fossil fuel divesting.

Hard to see that we are surrounded by mountains with all this smoke.

It's been a few weeks since I have posted anything. Shortly after my last post I drove down to Washington State to visit friends and do some research - my fourth and last trip of the summer. Even then - mid-August - smoke from forest and grass fires was heavy in the air.

On August 13th, when we were driving to Omak, smoke from a fresh fire rose like a huge mushroom cloud in the air. When I left on the 15th, I wasn't even sure that the roads north would be open.

When I arrived home to Revelstoke we had some refreshing rain followed by cooler weather and a few days of good sunshine. I was able to take advantage of those sunny days to bake a banana cake and a loaf of bread in my solar cooker. The cake recipe said to bake the batter for two hours but I took the cake out after 1 1/2 hours and felt it was overcooked. I think one hour of baking in the mid-day sun would have been perfect. The bread wasn't perfect because, as the sun moved, the cooker became shaded and the bread flopped. It's edible though. Next time I'll start baking around noon.

The bread wasn't perfect because I wasn't there to protect it
from the shade but I can see how it would work.

Part of the challenge of baking bread with only sunlight is heating water early enough in the day to permit the bread dough to rise twice for at least an hour each time. I discovered that my SunRocket solar kettle, which I had not used much up until now, was the perfect tool for heating water quickly. With only ten minutes in the morning sun, I had warm water that could be added to the yeast.

By Sunday and Monday the smoke from the forest fires drifted into the Revelstoke valley. The mountains, if they could be seen at all, were just a dim outline and I could feel the smoke in my lungs.

This intense fire season makes me think often of global warming and the reasons that I'm doing this project. It also highlights another limitation of solar energy. Like clouds, smoke obscures the sun, making cooking almost impossible and greatly reducing the energy output of the solar panel.

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One of my concerns in recent years has been saving for my retirement. I have struggled with the idea of mutual funds because I know that my money would be supporting companies with practices that I have serious concerns about. Most mutual funds, even ethical funds, invest in energy - i.e. oil and natural gas - and mining. While I benefit from the products of these industries, I am also very aware of the damage that they can cause. 

I have been investing my retirement savings in ethical funds but with this project I would like to go one step further and invest in funds that have divested from fossil fuels. Is it possible to do this while working with the financial institutions available in Revelstoke? 

I went around to all the banks, the Credit Union and investment companies. I learned that the banks had access to ethical funds but they did not have mutual funds that had divested from fossil fuels. Richard, at the Royal Bank, was very helpful. He said that if I did the research on fossil fuel divested funds, most banks would be able to set me up with a broker who could facilitate the purchase of that fund but that is the most they can do.

I also visited Investor's Group, which has its own socially responsible fund but no fund that has divested from fossil fuels. They offered to help me invest in particular companies but I am really looking for a more balanced mutual fund that is divested from fossil fuels.

My appointment with the Edward Jones representative is not until September so stay tuned.

Through my research, I learned that VanCity Credit Union has developed a fund that is divested from fossil fuels. The fund is called IA Clarington Inhance Global Equity SRI Class and it can be bought through our local Credit Union. The disadvantage with this fund is that it is an equity fund so it has more risk. We've been reminded of the risks in the dramatic events in the financial sector this week.

I think that if people keep asking their financial institutions for fossil-fuel-free investment options those institutions will eventually respond, just as VanCity did. 

I'm receiving e-mails from several campaigns that promote fossil fuel divestment. One interesting one is the Guardian newspaper's Keep it in the ground campaign. Another interesting group is 350.org. These campaigns try to persuade big investors to divest: Bill Gates, universities and pension funds. They don't seem to have much for small investors like me. Globe.net also has an excellent newsletter that deals with climate change issues from a business perspective.

Post Script, September 3

This week I was able to meet with Chris Bostock at Edward Jones in Revelstoke. Edward Jones does have access to a fossil fuel free mutual fund but Chris also talked with me about creating a guided portfolio where the client chooses the companies s(he) invests in. It is still done in a balanced way and guided by the Edward Jones representative. This option was also offered by the banks and Investor's group using their external brokers.

The positive side of this is that I don't have to include companies that I have concerns about and I can support companies that I believe in. The negative sides are that I am not as knowledgeable about investing as a professional would be and the minimum investment is a lot more than many people can afford - a $50,000 minimum.