Session 6 | Shareholders and divestment decisions

The 2025 IESE-ECGI Corporate Governance Conference was held on March 31, 2025, at IESE Business School’s Madrid campus, co-hosted by IESE and ECGI.

Session 6, "Shareholders and Divestment Decisions," examined the evolving role of divestment as a shareholder strategy in advancing climate goals. Moderated by Nuno Fernandes (IESE Business School and ECGI), the session featured a keynote by Marco Becht (Université libre de Bruxelles and ECGI), who challenged the traditional view that divestment is ineffectual, presenting evidence that divestment—especially when paired with a public narrative—can create reputational and regulatory risk for high-carbon firms. Drawing on data from social media and investor behavior, Becht argued for “voice through divestment” as a powerful complement to engagement. Gaizka Ormazabal (IESE Business School and ECGI) responded by framing divestment as a third impact mechanism—distinct from voice and exit—with the potential to shift norms and behavior indirectly through public signaling and social influence. The session sparked debate on the credibility, risks, and consequences of shareholder divestment in driving decarbonization.

Click to access the presentation slides from the speaker and the discussant.