Divestment theory

Divestment theory refers to the strategic decision to withdraw investments from certain sectors, companies, or assets, often for ethical, social, or environmental reasons. This approach advocates for reallocating funds away from organizations that might contribute to negative societal impacts, such as pollution or human rights abuses. Supporters believe that by divesting, they can pressure these companies to change their practices while promoting more sustainable and responsible investments. Essentially, it’s a way for individuals and institutions to align their financial choices with their values and encourage positive change in the market.