Microlearning Lesson

Understanding Divestment

Meaning, mechanics and practical challenges

This short lesson looks at what divestment means, why investors use it and why putting a divestment strategy into practice is not always straightforward.

Join the Hub — €99/year

Lesson Overview

Divestment beyond the slogan

Divestment can sound simple: sell an investment and remove exposure. In practice, the decision often raises harder questions about objectives, implementation and what success should look like.

This lesson introduces divestment as a responsible investment tool and looks at the practical issues that can arise when values, capital allocation and real-world outcomes meet.

In this lesson, we explore:

  • What divestment means and the motivations behind it
  • Arguments for and against using divestment as a tool
  • Examples involving South Africa, fossil fuels, Russia and Israel
  • Implementation challenges, from investment types to drawing the line
  • How to think about objectives, outcomes and what success might look like

Access This Lesson

This lesson is included in the Sustainable Investment Hub, with annual access to selected courses, guides, webinars and microlearning lessons on responsible investment, ESG and sustainability.

€99/year

Join the Hub

Short lessons. Clear thinking.

A practical look at divestment as a responsible investment tool and the choices involved in applying it.

Vincent McCarthy, CFA
Founder, Responsible Investment Institute®