Tuesday 26 May 2020

Cornell University announces fossil fuel divestment

Cornell University has announced its commitment to divesting its portfolio from new fossil fuel investments and expanding its endorsement of alternative energy technologies.

The university's Board of Trustees has approved the decision to make the change to how its $6.9 billion (£5.6bn) assets are invested after a recommendation by its Investment Committee.

It says the change will apply to new private equity and bonds focused on fossil fuels, which makes up about 4.2% of Cornell’s long-term investments - this percentage is expected to reach zero as existing investments mature and assets are redeployed to other areas, including renewables.

The university has also pledged to redouble its efforts to invest in more energy-efficient and clean technologies, such as carbon reduction and carbon capture, which could offer 'competitive risk-adjusted rates of return'.

Ken Miranda, the university’s Chief Investment Officer, said: "There’s a growing recognition that we’re transitioning away from fossil fuels globally and the economic competitiveness of renewable energy sources is rising.

"We’re doing the right thing from an investment perspective, particularly for an endowment with a perpetual time horizon."