disinvest

Disinvest (verb) means to withdraw investments from a company, asset, industry, or region, or to reduce exposure on ethical, political, or financial grounds. It overlaps with the term divestment, but emphasizes the act of withdrawing rather than the end ownership.

Its use grew in public policy during anti-apartheid protests, where governments and institutions sought to stigmatize and pressure actors by divesting. Since then, it has appeared in campaigns against fossil fuels, tobacco, weapons, and other practices deemed harmful.

Disinvestment typically involves screening or exclusion criteria, engagement with target companies to encourage reform, and, if needed, selling holdings. Institutions such as universities, pension funds, and municipalities may publish timelines and criteria to guide gradual withdrawal.

Supporters argue that disinvestment signals ethical stances, shifts capital away from undesirable activities, and can influence corporate behavior or policy. Critics question its effectiveness, noting potential fiduciary constraints, spillover effects to other investments, or limited impact if capital simply relocates to similar assets elsewhere.

Disinvestment remains a contested governance tool at the intersection of finance, ethics, and policy, with ongoing campaigns and evolving approaches to measurement and accountability.