Glossary

The glossary provides more information on some of the key terms we use on MyFairMoney. It also describes criteria, methods and data sources in more detail. This will help you dive deeper into the topic of sustainable investment!

Divestment

Divestment is the exclusion of certain economic sectors by investors. This is also referred to as "negative screening". The aim is to put pressure on companies in these sectors.

Divestment as a strategy is not about distancing oneself because of moral concerns, but a way to gain influence by sending a signal to companies. In extreme cases, the aim is to make it more difficult for companies that are active in certain areas to access capital and to increase the costs of raising capital. This should make it attractive for companies to avoid or restructure certain business sectors. 

This approach relies on a network-level effect, especially when it comes to smaller investors: numerous investors must jointly decide to act, for example to sell shares in a company. 

More about other strategies in the glossary.

 

 

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