by Josh O’Gorman | June 16, 2015
WATERBURY — A renewable energy company is walking the walk as it divests in fossil fuel companies.
SunCommon announced Monday its employee 401k investment portfolio no longer includes companies that produce or profit from fossil fuels, and will instead invest more heavily in renewable energy.
“At SunCommon, we believe everyone has the right to a healthy environment and safer world, and clean energy is the place to start,” said Duane Peterson, president and co-founder of SunCommon. “Divesting from fossil fuels was not just a moral play, it was a financial play. We’ve moved away from fossil fuels and in turn invested in our clean energy future.”
SunCommon is one of the largest solar installation companies in Vermont, responsible for half of residential solar projects and one-third of commercial projects in 2014. To meet rising demand, the company doubled its workforce last year and now employs nearly 70 people.
The company automatically enrolls its employees in a 401k retirement plan, which during the past 42 months has amassed $740,000.
“Those investments now will no longer fuel the planet’s carbon pollution, but will support thriving companies in the clean economy,” Peterson said.
While it might be right for the planet, it also appears to the right move financially. According to Bloomberg New Energy Finance, since 2013, global numbers show more renewable power has been added each year than coal, natural gas and oil combined.
In the short term, in 2014, investors with a low-carbon portfolio did better financially than those heavily invested in fossil fuels, according to Jillian Mayer, divestment coordinator for environmental advocacy group 350 Vermont.
More important though, according to Mayer, is the long-term investment picture, which she says will see fossil fuel companies unable to access fossil fuel reserves they have already sold, leaving investors with what she referred to as “stranded assets.”
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