Stuttgart, capital of the federal state of Baden-Württemberg in the southwest of Germany, decided today to pull its funds out of fossil fuels in response to the mounting threat of climate change.
The new investment criteria will see the city drop about 75 Stoxx-Europe listed companies engaging in coal, oil and unconventional gas or fracking from its current investments — including EnBW, EON, RWE, BASF and Bayer. The new guidelines also cover additional ethical investment criteria of environmental and social aspects as well as good governance.
Fossil Free Stuttgart has been pressuring the city to stop its investments in fossil fuels since July 2015. Their persistent lobbying efforts and creative actions paid off!
Carolin Jascheck of Fossil Free Stuttgart said: “We’re so happy that Stuttgart recognises that it’s unethical to pour public money into companies fueling climate change.”
Stuttgart’s new investment guidelines will apply to any new investments being made from 1 September 2016. Existing holdings that don’t meet the new criteria will be dropped.
Stuttgart developed its criteria based on the example of the City of Münster – the first city in Germany that banned coal, oil and gas from its portfolio. Last month, Germany’s capital city Berlin decided to divest from fossil fuels as well.