Harvard University has the largest endowment fund of any university and is divesting fossil fuels.
Harvard University has the largest endowment fund of any university, and after years of public pressure for its investment portfolio to turn green, it is withdrawing funds from fossil fuels.
Harvard University President Lawrence Bacow announced the news in a statement. letter Published on Thursday, stating that Harvard Management Company (HMC), which oversees the school’s $42 billion in donations, did not directly invest in companies that “explored or develop more fossil fuel reserves” and that it “does not intend to conduct such activities in the following areas” invest”. future”.
Bacow said that any indirect investment in fossil fuels through private equity funds is in a “runoff mode.”
“Given the need to decarbonize the economy and our responsibility as trustees to make long-term investment decisions that support our teaching and research tasks, we believe that such investments are not prudent,” Bacow said.
Over the years, Harvard has faced increasing pressure from students, alumni, and other activists to take a tougher stance on the climate crisis and to divest from fossil fuels.
Bacow said that instead of fossil fuels, “HMC is building a portfolio of funds to support the transition to a green economy.”
“In addition, the university and MIT have invested in The Engine, which aims to accelerate the development of technology to meet the challenges posed by climate change,” he added.
Bacow said that HMC is the first university endowment fund in the United States dedicated to achieving net zero greenhouse gas emissions, adding that since Harvard University announced the news, other universities have followed suit.