Ameer Randolph
In 2021, Harvard University announced that it would not make any future investments in fossil fuels, marking a significant victory for climate change activists and a shift from the university's previous resistance to such declarations. The university's president, Lawrence S. Bacow, cited climate change as the most significant threat facing humanity, and the decision was influenced by the election of pro-divestment candidates to the Board of Overseers. While Harvard has committed to ending its investments in fossil fuel companies, it has not provided a timeline for liquidation, and critics note that the university continues to accept funding from the fossil fuel industry for research and climate initiatives.
| Characteristics | Values |
|---|---|
| Year of divestment | 2021 |
| Endowment size | $41.9 billion |
| Type of divestment | Allowing remaining investments in the fossil fuel industry to expire |
| Direct investments in fossil fuels | None since June 2021 |
| Indirect investments in fossil fuels | Less than 2% of the endowment |
| Reasoning | Climate change is the most consequential threat facing humanity; investments in fossil fuels are not "prudent" |
| Public pressure | Yes, from students, alumni, Fossil Fuel Divest Harvard, and other activists |
| University response | Harvard has appointed its first vice provost for climate and sustainability and is building a portfolio of investments in funds that support the transition to a green economy |
| Criticism | Harvard stopped short of using the word "divest" and has not provided a timeline for liquidation |
| Ongoing financial ties with fossil fuel companies | Yes, Harvard accepted $20 million from the fossil fuel industry for research and climate initiatives in 2023 |
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What You'll Learn
- Harvard's divestment from fossil fuels was a victory for climate change activists
- The university's president, Lawrence S. Bacow, resisted divestment until 2021
- Harvard's divestment has inspired other institutions to follow suit
- The university still has financial ties to fossil fuel companies
- Activists are calling for Harvard to become a true climate leader
Harvard's divestment from fossil fuels was a victory for climate change activists
Harvard University's decision to divest its endowment from fossil fuels is a significant victory for climate change activists. The university, with its $41.9 billion endowment, announced that it "does not intend" to make any future investments in fossil fuels and is winding down its legacy investments. This marks a striking change in tone for the university, which has long resisted calls from students, faculty, and alumni activists to fully commit to divestment.
The campaign for fossil fuel divestment at Harvard has been a long and arduous one. Activists, students, and alumni have employed various strategies to push for change, including legal complaints, protests, and gaining seats on school governance boards. The movement gained support from prominent climate change advocates like former Vice President Al Gore, and four pro-divestment candidates were elected to Harvard's Board of Overseers.
Harvard's decision to divest is a powerful symbol of the success of the climate change movement. As one of the richest universities in the world, with the largest academic endowment in the country, Harvard's commitment sends a strong message to the fossil fuel industry and accelerates the global trend towards divestment. The university's president, Lawrence S. Bacow, acknowledged the threat of climate change, calling it "the most consequential threat facing humanity."
While Harvard's decision is a cause for celebration, some activists have criticized the university for not using the word "divest" and for its lack of a clear timeline for liquidation. There are also concerns about Harvard's ongoing financial ties to the fossil fuel industry through research funding and its obligations to private equity firms that invest in fossil fuels. Nonetheless, the victory at Harvard has inspired climate change activists worldwide and demonstrated the power of persistent organizing and advocacy.
Harvard's divestment from fossil fuels sets a precedent for other universities and institutions to follow suit. It is a testament to the dedication and perseverance of climate change activists who worked tirelessly to bring about this change. While there is still more work to be done, Harvard's decision marks a pivotal moment in the fight against climate change and a step towards a more sustainable future.
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The university's president, Lawrence S. Bacow, resisted divestment until 2021
In September 2021, Harvard University's president, Lawrence S. Bacow, announced that the university would stop investing in fossil fuel companies. This marked a shift in his stance, as he had previously resisted calls for divestment from fossil fuels.
Bacow's announcement came after years of lobbying and public pressure from student activists, faculty, and alumni. In 2019, he confronted protesters demanding divestment, telling them he would respond to "reason" rather than "pressure." In April 2020, as the overseers' election approached, Bacow stated that divestment "paints with too broad a brush." However, by September 2021, he announced that the Harvard Management Company (HMC) had been reducing its exposure to fossil fuels and had no direct investments in companies exploring or developing further fossil fuel reserves.
In an email to the Harvard community, Bacow cited climate change as the "most consequential threat facing humanity." He also noted that Harvard's indirect investments in the fossil fuel industry made up less than 2% of its total endowment. While Bacow's announcement was celebrated as a victory for the climate movement, he was criticized for not using the word "divest" and for not providing a timeline for liquidation.
Harvard's decision to divest from fossil fuels carries powerful symbolism, and it joins other universities like Oxford, Cambridge, Brown, and Cornell in making similar commitments. However, it is important to note that Harvard's commitment to divestment does not mean an immediate end to all financial ties with the fossil fuel industry. The university still holds legal obligations to fund private equity firms that invest in fossil fuels, and it remains to be seen how long it will take for Harvard to completely divest.
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Harvard's divestment has inspired other institutions to follow suit
Harvard's decision to divest from fossil fuels has had a ripple effect, inspiring other institutions to follow in its footsteps. This move by one of the most prestigious universities in the world has sent a powerful message and added momentum to the global divestment movement.
Harvard's divestment campaign, led by students, faculty, and alumni activists, faced years of resistance from the university administration. The success of this campaign, therefore, carries significant symbolic value and has empowered similar campaigns worldwide.
The victory at Harvard has demonstrated that persistent activism works and that even the most influential institutions are not immune to public pressure. This has encouraged activists at other universities to renew their efforts and demand that their institutions follow Harvard's lead.
Indeed, several universities have already committed to divesting from fossil fuels, including Oxford, Cambridge, Brown, and Cornell. These universities have recognized the financial and ethical arguments for divestment, as well as the need to address climate change, which Harvard's President Lawrence Bacow described as the "most consequential threat facing humanity."
Furthermore, Harvard's decision has contributed to a broader trend of institutions shifting their investments away from the fossil fuel industry. For example, Norway's sovereign wealth fund, built on money from the oil and gas industry, completely divested from the sector. Additionally, Pope Francis has urged Catholics and the Catholic Church to move their money away from fossil fuels, and the British royal family has significantly reduced its fossil fuel portfolio. These actions, influenced in part by Harvard's decision, demonstrate a growing global consensus on the importance of divestment in addressing climate change.
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The university still has financial ties to fossil fuel companies
In 2021, Harvard University announced that it would not make any future investments in fossil fuels and would instead focus on "building a portfolio of investments in funds that support the transition to a green economy". This announcement came after years of pressure from climate activists, students, faculty, and alumni.
However, despite this commitment to divest from fossil fuels, Harvard still maintains financial ties to fossil fuel companies. In 2023, it was reported that Harvard accepted $20 million from the fossil fuel industry for research and climate initiatives. This funding came from major oil and gas companies, including ExxonMobil, Chevron, Shell, and Koch Industries.
Harvard's acceptance of this funding has been criticized by the Fossil Fuel Divest Harvard movement, which argues that the university's institutional values and academic freedom are at risk when it accepts money from the fossil fuel industry. The group also alleges that Harvard routinely hides its donors and refuses to disclose funding sources, violating its own conflict-of-interest policies.
Furthermore, while Harvard has stated that it will allow its remaining investments in the fossil fuel industry to expire, it has not provided a timeline for the liquidation of these investments. As of 2021, Harvard still held indirect investments in the fossil fuel industry, amounting to less than 2% of its endowment of approximately $41.9 billion.
Therefore, while Harvard has publicly committed to divesting from fossil fuels, it still has financial ties to the industry, and there are ongoing concerns about the transparency and speed of its divestment process.
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Activists are calling for Harvard to become a true climate leader
In September 2021, Harvard University announced that it "does not intend" to make any future investments in fossil fuels, marking a significant victory for climate activists and a shift in the university's stance on the issue. While the university's president, Lawrence S. Bacow, stopped short of using the word "divest," he acknowledged that climate change is the most consequential threat facing humanity and committed to ending investments in fossil fuel companies. This decision came after years of pressure from students, faculty, and alumni activists associated with the Fossil Fuel Divest Harvard movement, who advocated for Harvard to align its investments with its teaching and research on climate change.
Despite this progress, activists are continuing to push for Harvard to become a true climate leader. They argue that the university must follow through on its commitments and address gaps in its pledge to become net-zero in greenhouse gas emissions by 2050. Moreover, they criticize Harvard for accepting $20 million from the fossil fuel industry for research and climate initiatives, which they believe compromises academic freedom and the university's institutional values. Activists also urge the university to "stop lending its prestige and power" to the fossil fuel industry and fully dissociate itself from the sector.
Harvard's decision to divest from fossil fuels is significant due to its large endowment, currently valued at around $41 billion, and its prestigious reputation. The university's move is expected to influence other institutions and contribute to the broader trend of divestment from the fossil fuel industry. However, some critics argue that divestment may not be the most effective strategy for protecting the environment. They suggest that remaining involved as shareholders could allow them to shape the behavior of oil and gas companies from within, pushing for greener decisions.
To become a true climate leader, Harvard must address the concerns raised by activists and demonstrate a genuine commitment to combating climate change. This includes ensuring the university's financial and research practices align with its sustainability goals and values. Furthermore, as one of the wealthiest and most influential universities in the world, Harvard has the responsibility to advocate for systemic change and support the transition to a green economy beyond its campus. This could involve leveraging its endowment to invest in innovative technologies and renewable energy sources and initiatives that promote environmental justice and a sustainable future.
Harvard's journey towards becoming a climate leader is ongoing, and the university has taken initial steps by appointing a vice provost for climate and sustainability and building a portfolio of investments in funds that support the green transition. However, activists remain vigilant to hold the university accountable and ensure that Harvard's actions match the urgency and magnitude of the climate crisis.
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Frequently asked questions
Yes, in 2021, Harvard University announced that it would stop investing in the fossil fuel industry.
Climate activists and students celebrated the decision as a victory for the climate movement and the world. However, some criticised Harvard's president, Lawrence Bacow, for not using the word "divest" and urged the university to follow through on its commitments.
Harvard's decision to divest from fossil fuels was driven by a combination of financial and ethical considerations. The university recognised that climate change is the most consequential threat facing humanity and that investments in the fossil fuel industry were not prudent.
Following years of public pressure from students, faculty, and alumni, Harvard announced that it would allow its remaining investments in the fossil fuel industry to expire, gradually phasing out its investment holdings.
Harvard's decision to divest from fossil fuels is significant due to its position as America's richest university, with a $41 billion endowment. This decision has powerful symbolism and adds momentum to the global movement for divestment from the fossil fuel industry.
