divestment
The action or process of selling off subsidiary business interests, assets, or investments, often for ethical or political reasons.
In the climate context, 'divestment' specifically refers to institutional investors (like universities) pulling their money out of fossil fuel companies.
Word relationships
- disinvestment: Disinvestment is a more technical economic term; divestment is more common in social and political contexts.
- investment: Investment is putting money into something to help it grow.
Commonly confused with
- diversification: Diversification is spreading investments across many areas; divestment is removing them from one specific area.
Word family
- divest (verb): To strip or deprive; to sell off.
Collocations
- fossil fuel divestment
- divestment campaign
- divestment strategy
- full divestment
Example sentences
- "The student body campaigned for the university's divestment from coal and oil companies." University Activism
- "The company's divestment of its non-core assets helped it focus on renewable energy." Corporate Strategy
Memory hook
Divest is like 'D-VESTing'—taking off the financial vest you were wearing. Undressing the portfolio.
When not to use
Don't use it for just selling a stock for profit. It usually implies a strategic or moral decision to stop supporting a specific sector.
Fun facts
- The word 'invest' means to 'clothe' yourself in something; 'divest' is the opposite.
Related words
Explore more words
Divestiture, decarbonize, Spin-off, decarbonization, privatization, decouple
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