Managed Decline of Fossil Fuel Businesses

“Manage Decline of Fossil Fuel Businesses” sets out five criteria to help institutional investors decide whether or not to divest from companies which extract fossil fuels. Investors, considering divestment, can use all five of the criteria to assess whether fossil fuel company activities are aligned with the managed decline pathway and goals of the Paris Agreement, and if investment in these companies should continue.

The criteria are:

  1. No lobbying for policies that reduce the probability of the 1.5°C goal.
  2. No exploration spending.
  3. No approval or acquisition of new fossil fuel infrastructure or projects.
  4. A clear plan for wind down of fossil fuel extraction.
  5. Remuneration policies that support managed decline of fossil fuel extraction.


The criteria are not in any way altering the call for divestment of all fossil fuel companies. The criteria are instead guiding principles through which investors can consider divestment, or remain invested in order to align the operations of fossil fuel companies with a managed decline.