As the future of fossil fuels and alternative methods of energy extraction remain unstable around the world, due to carbon policies and worldwide targets, the change in attitude is consistent; stay away from these energy investment opportunities.

This shift is particularly prevalent in the religious investor attitude, just as ethically unstable products such as tobacco and alcohol have been long seen by religious investment groups as unsuitable options, fossil fuels and fracking are headed down the same path.

The largest religious investor to publically announce a shift is the 1.1million member ‘United Church of Christ’ (UCC); who revealed a plan to divest all of its current fossil-fuel backing. The UCC are also supported by their Australian contemporaries, who have chosen to simply exclude all fossil fuel holdings; further promoting their attitude that fossil fuel organisations are aggravating our ‘climate change emergency’.

Alongside the global religious groups taking action, Norwegian based investment firm ‘Storebrand’ have also made a conscious decision to shy away from what it brands as ‘high risk’ fossil fuel companies. As a long-term investor, it is necessary for Storebrand to fully assess the longevity of any potential opportunity and their head of sustainable investments, Christine TØrklep Meisingset believes that they are not making the grade; “There is too much risk in fossil fuel in the long run, at some point that is going to affect the valuation of the companies”. She goes on to note that as a “long-term investor” it is essential “to be there in 30, 40 or 50 years’ time to provide pensions, which is one of the reasons we have been working in the sustainable investment space.”

With similar thoughts, Dutch bank ‘Rabobank’ have recently disclosed plans to exclude “unconvential energy extraction projects” from their loan portfolio as they are not comfortable with the social and environmental implications of such methods.

With these reported examples of religious, investment and banking shifts away from fossil fuel and alternative energy extraction; is it time for other investors to follow their lead? As the uncertainty of these sectors increases, the confidence of investors is likely to fall in parallel; which may push organisations to reconsider their position and look at long-term, green energy opportunities.