Rutgers University said it will rescind roughly $80 million in investments from fossil fuel companies over the next decade and cease any new shares.
The March 9 announcement is part of the university’s bid to adopt a more environmentally conscious approach and is part of a broader national shift toward renewable energy sources such as solar and wind. Rutgers said the funds will instead be invested in those industry sectors.
Over the next year, Rutgers will pull its investments in stock market financing vehicles known as “passive index funds,” while the remainder held in private fossil fuel investments will be pulled back over the next 10 years. A breakdown of how much was parked in these two categories was not immediately available.
Fossil fuel disinvestments by universities and other public entities with sizable pots of money – like pension funds or endowments – has picked up in popularity over the past decade. As of April last year, 1,132 separate institutions across the world pledged to pull a combined $14 trillion of investments from the fossil fuel industry, according to the advocacy group GoFossilFree.org.
“While the university has taken steps recently to limit investments in this area, approving a policy of divestment from fossil fuels is a significant expression of the values of our institution and our broader community,” Rutgers President Jonathan Holloway said in a March 9 statement.
Funds invested in fossil fuel companies – those centered on the “exploration or extraction of fossil fuels, including coal, oil and natural gas,” and the ancillary infrastructure – come out of the state’s $1.6 billion endowments.
Just 5% of the endowments, or $80 million, is invested in fossil fuel businesses, according to the university.
A breakdown of those companies was not immediately available, but a lion’s share, 60% of the $80 million, was in private funds, while the rest was in public equity or fixed income accounts.
