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Oxbridge academics call for 'morally sound' university investments Oxbridge academics call for 'morally sound' university investments
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Hundreds of academics from the universities of Cambridge and Oxford are demanding their institutions adopt an “evidence-based, morally sound investment policy that serves the needs of the future”, which could include divestment from fossil fuels.Hundreds of academics from the universities of Cambridge and Oxford are demanding their institutions adopt an “evidence-based, morally sound investment policy that serves the needs of the future”, which could include divestment from fossil fuels.
The call is supported by Lord Deben, chair of the government’s official climate change advisory committee; Prof David Mackay, former chief scientist at the Department of Energy and Climate Change; the incoming president of the Royal Society, Sir Venki Ramakrishnan, and the former Archbishop of Canterbury Rowan Williams, as well as 300 other academics.The call is supported by Lord Deben, chair of the government’s official climate change advisory committee; Prof David Mackay, former chief scientist at the Department of Energy and Climate Change; the incoming president of the Royal Society, Sir Venki Ramakrishnan, and the former Archbishop of Canterbury Rowan Williams, as well as 300 other academics.
“Positive investment is a crucial element of any plan to keep global warming to safe levels,” said Cambridge alumnus Lord Deben, a former Conservative environment secretary. “These universities are doing tremendously important work on the research side; it would be great to see those contributions reflected in the investment strategies of Europe’s two largest university endowments.”“Positive investment is a crucial element of any plan to keep global warming to safe levels,” said Cambridge alumnus Lord Deben, a former Conservative environment secretary. “These universities are doing tremendously important work on the research side; it would be great to see those contributions reflected in the investment strategies of Europe’s two largest university endowments.”
Lord Deben said: “The options before us are impressive in scope and scale – from energy efficiency financing through green bonds to private investment in renewable energy, from divestment from fossil fuels to investment in green venture capital.”Lord Deben said: “The options before us are impressive in scope and scale – from energy efficiency financing through green bonds to private investment in renewable energy, from divestment from fossil fuels to investment in green venture capital.”
Scientists agree that most existing coal, oil and gas reserves must remain in the ground if climate change is to be kept below the internationally agreed danger limit of 2C warming. Campaigners, backed by Archbishop Desmond Tutu, argue there is moral case for divesting from fossil fuel companies which are exploring for new reserves.Scientists agree that most existing coal, oil and gas reserves must remain in the ground if climate change is to be kept below the internationally agreed danger limit of 2C warming. Campaigners, backed by Archbishop Desmond Tutu, argue there is moral case for divesting from fossil fuel companies which are exploring for new reserves.
They also argue there is a financial case for divestment because, if the majority of fossil fuels become unburnable, companies could crash in value. Many endowments have already lost money on fossil fuel investments due to plunging coal and oil prices. Funds worth $3.4 trillion have already divested from fossil fuels, including many universities, the world’s biggest sovereign wealth fund, held by Norway, and two of the world’s biggest pension funds, in California.They also argue there is a financial case for divestment because, if the majority of fossil fuels become unburnable, companies could crash in value. Many endowments have already lost money on fossil fuel investments due to plunging coal and oil prices. Funds worth $3.4 trillion have already divested from fossil fuels, including many universities, the world’s biggest sovereign wealth fund, held by Norway, and two of the world’s biggest pension funds, in California.
“It’s great to see Oxbridge academics join calls for morally sound investments,” said Andrew Taylor, at the People & Planet student campaign group. “Over 4,000 of their students believe the only moral choice is to divest from the fossil fuel companies driving us towards a climate crisis.”“It’s great to see Oxbridge academics join calls for morally sound investments,” said Andrew Taylor, at the People & Planet student campaign group. “Over 4,000 of their students believe the only moral choice is to divest from the fossil fuel companies driving us towards a climate crisis.”
Oxford and Cambridge universities are among the most prestigious and influential in the world and have endowments of £5bn and £4.2bn respectively, including college funds. Cambridge and Oxford universities are among the most prestigious and influential in the world and have endowments of £5.8bn and £4.2bn respectively, including college funds.
The academics told Cambridge that, “in the face of looming social, environmental, and financial pressures”, adopting an evidence-based, morally sound investment policy would be “highly appropriate for an institution whose ideals are those of free inquiry, intellectual rigour, and scholarship in service of the common good”.The academics told Cambridge that, “in the face of looming social, environmental, and financial pressures”, adopting an evidence-based, morally sound investment policy would be “highly appropriate for an institution whose ideals are those of free inquiry, intellectual rigour, and scholarship in service of the common good”.
A spokesman for the University of Cambridge said: “The university seeks to invest responsibly for the good of the university in accordance with our mission to contribute to society. In summer 2015, the university commissioned a thorough and unique review whose broad purpose is to explore fully environmental, social, and governance aspects - including but not limited to fossil fuel investments - in investment decisions.” The academics welcomed the review, which is ongoing.A spokesman for the University of Cambridge said: “The university seeks to invest responsibly for the good of the university in accordance with our mission to contribute to society. In summer 2015, the university commissioned a thorough and unique review whose broad purpose is to explore fully environmental, social, and governance aspects - including but not limited to fossil fuel investments - in investment decisions.” The academics welcomed the review, which is ongoing.
The academics told Oxford University that it should investigate investment policies that “more fully align with the institutions’ own stated missions and values”. In May 2015, the university committed to divesting from coal and tar sands, but not all fossil fuels. The university declined to comment on Tuesday.The academics told Oxford University that it should investigate investment policies that “more fully align with the institutions’ own stated missions and values”. In May 2015, the university committed to divesting from coal and tar sands, but not all fossil fuels. The university declined to comment on Tuesday.
“Oxford made a good first step when it spurned coal and tar sands in 2015,” added Taylor. “Cambridge should listen to the science and stop profiting from wrecking the climate, by divesting from all fossil fuels this year. If it does it won’t just leapfrog its old rival but show leadership that will be remembered in history.”“Oxford made a good first step when it spurned coal and tar sands in 2015,” added Taylor. “Cambridge should listen to the science and stop profiting from wrecking the climate, by divesting from all fossil fuels this year. If it does it won’t just leapfrog its old rival but show leadership that will be remembered in history.”
Lord Deben said the Cambridge review could be used by other investors: “Cambridge can bring to this its characteristic academic rigour and therefore produce evidence and recommendations that other long­ term investors can trust.”Lord Deben said the Cambridge review could be used by other investors: “Cambridge can bring to this its characteristic academic rigour and therefore produce evidence and recommendations that other long­ term investors can trust.”
The World Bank, along with analysts at Citigroup, HSBC, Mercer and the Carbon Tracker Initiative, have all warned of the financial risk that climate action poses to fossil fuel investments. The Bank of England and G20 are examining the risk this poses to the global economy.The World Bank, along with analysts at Citigroup, HSBC, Mercer and the Carbon Tracker Initiative, have all warned of the financial risk that climate action poses to fossil fuel investments. The Bank of England and G20 are examining the risk this poses to the global economy.