University of California system to divest its fossil fuel investments

first_img FacebookTwitterLinkedInEmailPrint分享The San Diego Union-Tribune:Top financial officials with the University of California announced Tuesday morning in an opinion article in the Los Angeles Times that the school system plans to undertake a major divestment from fossil fuels.The stocks and bonds to be sold off are currently part of UC’s $13.4 billion endowment and $70 billion pension fund.The article — penned by Jagdeep Singh Bachher, UC’s chief investment officer and treasurer and Richard Sherman, chairman of the UC Board of Regents’ Investments Committee — comes after faculty across the 10-campus system held a historic vote in July to demand divestment of the endowment.Teachers, backed by a vocal student movement, have said to the UC Regents that dumping the oil and gas holdings represents an ethical obligation in the age of climate change. They also argued that investing in fossil fuel companies has become increasingly risky because extractive activities will likely, and perhaps abruptly, be significantly restricted in the future to limit damage to the environment.Sherman of the UC Board of Regents has, as recently as August, rejected the second argument, saying that divestment would be in conflict with the university system’s “fiduciary duty.”However, in Tuesday’s article, he and Bachher said the decision to divest was based solely on what’s best for the system financially. “We believe hanging on to fossil fuel assets is a financial risk,” they wrote. “That’s why we will have made our $13.4-billion endowment ‘fossil free’ as of the end of this month, and why our $70-billion pension will soon be that way as well.”More: UC to dump fossil fuels holdings in pension and endowment funds worth $83 billion University of California system to divest its fossil fuel investmentslast_img