Harvard University, which has the most important endowment of any college, is divesting from fossil fuels.
Harvard University, which boasts the most important endowment of any college, is divesting from fossil fuels after years of public strain to inexperienced up its portfolio.
Harvard’s President Lawrence Bacow made the announcement in a letter printed on Thursday, saying that Harvard Management Company (HMC) -which oversees the varsity’s $42bn endowment – has no direct investments in companies that “explore for or develop further reserves of fossil fuels” and it “does not intend to make such investments in future”.
Any oblique investments in fossil fuels through personal fairness funds, Bacow mentioned, are in “runoff mode”.
“Given the need to decarbonize the economy and our responsibility as fiduciaries to make long-term investment decisions that support our teaching and research mission, we do not believe such investments are prudent,” mentioned Bacow.
Harvard has confronted mounting strain for years from college students, alumni and different activists to take a more durable stance on the local weather disaster and divest from fossil fuels.
In lieu of fossil fuels, “HMC is building a portfolio of investments in funds that support the transition to a green economy,” mentioned Bacow.
“In addition, the University has made investments alongside MIT in The Engine, a fund that, among other things, seeks to accelerate the development of technologies that promise to address the challenges posed by climate change,” he added.
HMC was the primary college endowment within the United States to commit to attaining net-zero greenhouse gasoline emissions, mentioned Bacow, including that since Harvard made that announcement, different universities have adopted swimsuit.