Harvard University will divest itself from fossil fuels

Harvard University will divest itself from fossil fuels

Harvard University will divest itself from holdings in fossil fuels, President Lawrence Bacow mentioned Thursday.

Harvard Management Company, which oversees the college’s almost $42 billion endowment, has already been lowering its publicity to fossil fuels and has no direct investments in corporations that probe for or develop additional reserves of fossil fuels, Bacow mentioned in a message posted on the college’s web site.

The college has legacy investments in a lot of non-public fairness funds with holdings within the fossil gas trade. Those oblique investments represent lower than 2% of the endowment, in accordance with Bacow.

The faculty has not made any new commitments to those restricted partnerships since 2019 and has no intention to take action going ahead, he added.

Bacow mentioned the legacy investments are in “runoff mode” and will finish as these partnerships are liquidated. Harvard has already dedicated to reaching net-zero greenhouse fuel emissions throughout your complete investment portfolio by 2050, he mentioned.

“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,” he wrote.

The choice follows years of protests from college students who’ve pressed Harvard to divest from fossil gas corporations.

Harvard is constructing a portfolio of investments in funds that assist the transition to a inexperienced financial system, Bacow wrote. He mentioned the college has made investments together with the Massachusetts Institute of Technology in The Engine, a fund that, amongst different issues, “seeks to accelerate the development of technologies that promise to address the challenges posed by climate change.”

The college will additionally work to attain “greater transparency in the greenhouse gas footprint of all of our investment managers, along with the development of protocols for assessing and reducing the footprint for entire investment portfolios.” he wrote.

“We must continue to work with our investment managers and with industry if we are to bring about the transformation of our economy that climate change demands,” he added.

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