Harvard University Endowment Fund Declares Divestment from Fossil Fuel-Related Investments

[Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Harvard University's endowment fund in the United States officially announced on the 9th (local time) that it will cease investments in fossil fuels and operate the fund with the purpose of supporting a green economy.

Larry Bacow, CEO of Harvard Management, which manages the endowment fund, stated in a notice posted on Harvard University's website that day, "We are not investing in companies that develop fossil fuels and have no plans to invest in the future." As of the end of June last year, the assets under management of Harvard University's endowment fund amounted to $41.9 billion.

Harvard students and alumni have continuously demanded the fund to stop investing in fossil fuels over the past few years, and the fund has officially accepted this demand.

Harvard Management announced in its 2017 investment decision that it would reflect environmental factors. Additionally, last year, it declared its investment management policy to achieve net-zero greenhouse gas emissions by 2050.

However, Harvard students and alumni expressed dissatisfaction, saying the fund's response was too late. In March, students even filed a lawsuit to force the sale of fossil fuel-related assets estimated at $838 million.

CEO Bacow stated, "Considering the necessity of a carbon-free economy and the responsibility as a trustee managing the endowment, investing in fossil fuels is imprudent," adding, "Currently, the proportion of fossil fuel investments is less than 2% and is being reduced."

Before Harvard, the University of California, the University of Cambridge in the UK, and others had already declared the cessation of fossil fuel investments.

Bloomberg reported that the top 10 public pension funds in the U.S. still have significant investments in fossil fuel-related companies. According to Bloomberg Intelligence analysis, the investment scale amounts to about $40 billion, which corresponds to approximately 9% of the assets under management of the top 10 public pension funds.

This content was produced with the assistance of AI translation services.