UniSuper is a $100 billion superannuation fund for Australia’s uni sector (think uni professors and other faculty members). And they've committed to having net-zero carbon emissions across their investment portfolio by 2021.

It's a big ask, but they had a strategy: ensure all companies they're invested in have a Paris-aligned target by the end of 2021. 

They named and shamed ASX-listed companies they were invested in that weren't doing their bit, and biotech CSL (which makes the flu vaccine) was one of them. The crew at CSL haven't set a net-zero emissions target yet, and UniSuper is threatening to divest from them because of it.

So what's the key learning?

Divestment is when a business sells its investment in another company. It's basically the exact opposite of an investment.

The most common reason for a divestment is to get rid of underperforming businesses. But it can also be for political or social reasons (like not taking a stand against climate change).

Divesting can be a way to make a point, but it can also come at a cost. Investors can lose out on some juicy returns, and they can also lose their ability to make a change at the company they're invested in. Divesting = losing your seat at the table.

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