Regan Brown
The University of Vermont (UVM) has a history of student activism and has undertaken several divestment actions due to this pressure. In 2019, students urged UVM to stop investing in fossil fuel companies, and in 2020, the university committed to divesting its $536 million portfolio of all investments involving fossil fuels by July 2023. This decision was influenced by the success of sustainable green investment funds and UVM's commitment to carbon neutrality by 2030. While UVM has faced criticism for its slow response to student demands, it has a history of environmental leadership, including the establishment of a sustainability requirement for all undergraduates in 2015.
| Characteristics | Values |
|---|---|
| Year of divestment from fossil fuels | 2023 |
| Date of announcement | July 14, 2020 |
| Amount of divestment | $536 million |
| Percentage of portfolio divested | 6.7% |
| Amount of public investments sold | $13 million |
| Amount of private investments | $6.1 million |
| Year of ending new direct investments in fossil fuels | 2017 |
| Year UVM trustees rejected call for divestment from fossil fuels | 2013 |
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What You'll Learn
Student-led divestment campaigns
The University of Vermont (UVM) has a history of student-led divestment campaigns that have influenced the university's investment decisions. In 2019, students from Organize UVM and UVM Progressives confronted the Board of Trustees, urging them to divest from fossil fuel companies and invest in renewable energy. This pressure campaign resulted in the university's decision in 2020 to end new direct investments in fossil fuels and commit to fully divesting from public investments in fossil fuels by July 2023.
UVM has a track record of responding to student-led divestment campaigns. In the 1980s, student protests led the university to divest from companies doing business in apartheid South Africa. Similarly, in 2006, UVM divested from "Sudan-friendly" companies during the Darfur genocide, and in 2009, it divested from cluster munitions and depleted uranium weapons during the Iraq and Afghanistan wars. These campaigns demonstrate the power of student activism in shaping the university's investment policies.
The success of student-led divestment campaigns at UVM aligns with a broader trend of universities divesting from fossil fuels. Universities such as Harvard, Yale, the University of Michigan, and Whitman College have also witnessed powerful student movements demanding divestment. These campaigns have exposed the connections between universities, finance, and fossil fuels, highlighting the potential for transformative change. The localized focus of these campaigns, coupled with their connection to national and global movements, has been instrumental in their success.
The impact of student-led divestment campaigns extends beyond individual universities. By sharing research, strategies, and resources with other activist groups, students are driving systemic change. Initiatives like the Divest Canada Coalition, launched in 2020, provide a platform for campaigns to unite and amplify their voices. This collective action challenges the traditional top-down, corporate-managerial models in universities and demands a shift towards ethical and sustainable investment practices.
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The University's response
The University of Vermont (UVM) has a long history of student activism and has undertaken several divestment actions due to this advocacy. In 2019, students from Organize UVM and UVM Progressives urged the Board of Trustees to stop investing in fossil fuel companies and invest in renewable energy instead. In July 2020, UVM officials announced that they would divest the school's $536 million portfolio of all investments involving fossil fuels, with plans to fully divest from public investments in fossil fuels by July 2023.
UVM has a strong commitment to sustainability and environmental leadership. In 2013, the Board of Trustees rejected a proposal for divestment from fossil fuels, but the university has since taken significant steps towards responsible investing. In 2015, UVM introduced a sustainability requirement for all undergraduates, offering pre-approved sustainability classes. The university also established the Clean Energy Fund, generating about $230,000 annually through a self-imposed $10 per semester fee for all students. In 2017, UVM stopped acquiring new multi-year private investments in fossil fuels, and by July 2020, it had ended all new direct investments in the industry.
UVM's pooled endowment is invested with screens that exclude tobacco, cluster munitions, uranium, and landmines. The UVM Foundation has a $1 million endowment fund invested in green and fossil fuel-free initiatives. Additionally, in 2012, the university established a $13 million Energy Revolving Fund, investing in campus energy-efficiency projects. UVM is committed to sustainable purchasing and has established policies and procedures to support this effort.
Looking ahead, UVM plans to pursue investments in renewable energy, electrified buildings and vehicles, reduced vehicle fleets, and geothermal exploration. The university has committed to carbon neutrality by 2030 and will continue investing in opportunities that focus on sustainability, climate change mitigation, and Environmental, Social, and Governance (ESG) issues. UVM will engage with the managers of its commingled funds, requesting that they consider the financial risks of climate change in their investment decisions and share their framework for doing so.
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The Board of Trustees' decision
The University of Vermont (UVM) has a history of student activism, with a notable focus on responsible investment and divestment. In 2019, students from Organize UVM and UVM Progressives directly confronted the Board of Trustees, urging them to stop investing in fossil fuel companies and to instead invest in renewable energy. This pressure campaign resulted in the Board's decision to divest from fossil fuels, with a deadline set for July 2023.
The Board's decision was influenced by several factors. Firstly, students played a crucial role in advocating for change, presenting a well-researched and thoughtful case for divestment. This included an analysis of UVM's investment portfolio and a recognition of the success of sustainable "green" investment funds. Secondly, the university's commitment to environmental leadership and sustainability was a key consideration. UVM introduced a sustainability requirement for all undergraduates in 2015 and pledged to achieve carbon neutrality by 2030. Divesting from fossil fuels aligned with these sustainability goals. Finally, the changing investment landscape influenced the decision, as energy stocks had been performing poorly, and the long-term outlook for the fossil fuel industry was increasingly bleak.
As a result of these factors, the Board of Trustees voted to end new direct investments in fossil fuels as of July 14, 2020, with a plan to fully divest from public investments in fossil fuels by July 2023. They also decided to allow pre-existing multi-year private investments, which had been stopped in 2017, to lapse without renewal. This decision built on UVM's previous divestment actions, including divestment from companies doing business in apartheid South Africa in the 1980s and from Sudan-friendly companies during the Darfur genocide in 2006.
The Board's decision to divest from fossil fuels was a significant step towards aligning UVM's investments with its values and environmental goals. It demonstrated the university's commitment to sustainability and responsible investing, as well as its willingness to listen to and act on student initiatives. This decision added to UVM's track record of environmental leadership and set a precedent for other institutions to follow suit.
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The divestment timeline
In 2012, UVM trustees established a $13 million Energy Revolving Fund, joining the Sustainable Endowment Institute's Billion Dollar Green Challenge. The fund borrows from the University's low-interest-bearing cash account to invest in campus energy-efficiency projects with a payback period of less than seven years.
In 2013 and again in 2017, the Board of Trustees rejected calls to divest from fossil fuels. However, in 2017, UVM stopped acquiring new multi-year private investments in fossil fuels.
In 2019, students from Organize UVM and UVM Progressives confronted the Board of Trustees, urging them to divest from fossil fuel companies and invest in renewable energy.
On July 14, 2020, the University of Vermont announced that it would end new direct investments in fossil fuels and commit to fully divesting from public investments in fossil fuels by July 2023. The Board's Investment Subcommittee voted to sell $7.1 million in fossil fuel-related public real assets and apply screens to equity portfolios, resulting in the sale of an additional $6.1 million in fossil fuel investments.
By April 2023, the university committed to carbon neutrality by 2030, pursuing investments in renewable energy, electrified buildings and vehicles, reduced vehicle fleets, and geothermal exploration.
In July 2023, UVM completed exiting all direct investments in fossil fuels, as well as one private equity investment linked to fossil fuels. All other actions associated with the Board of Trustees' resolution on fossil fuel divestment are on track.
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Future investment plans
The University of Vermont (UVM) has a history of student activism around socially responsible investing, with a particular focus on divestment from fossil fuel companies in recent years.
In 2019, students from Organize UVM and UVM Progressives confronted the Board of Trustees, urging them to divest from fossil fuel companies and invest in renewable energy. In July 2020, UVM announced that it would divest its $536 million portfolio of all investments involving fossil fuels, with a deadline of July 2023 for public investments and 2030 for commingled or private funds. As of July 2020, UVM ended new direct investments in fossil fuels and decided to allow pre-existing multi-year private investments, which it stopped acquiring in 2017, to lapse without renewal.
UVM has a track record of environmental leadership, including the introduction of a sustainability requirement for all undergraduates in 2015 and a commitment to carbon neutrality by 2030. The university plans to pursue investments in renewable energy, electrified buildings and vehicles, reduced vehicle fleets, and geothermal exploration.
In addition to its focus on sustainability, UVM has a history of divestment from other industries for ethical reasons. In 2006, the university divested from companies doing business with Sudan during the Darfur genocide, and in 2009, it divested from cluster munitions and depleted uranium weapons during the Iraq and Afghanistan wars.
Looking forward, UVM will continue to invest in opportunities that focus on sustainability, climate change mitigation, and other environmental, social, and governance (ESG) issues. The university will also engage with the managers of its commingled funds to ensure that they consider the financial risks of climate change in their investment decision-making.
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Frequently asked questions
In 2020, it was announced that UVM would divest its $536 million portfolio of all investments involving fossil fuels. Around 6.7% of this, or $36 million, was said to be linked to fossil fuels.
Students from Organize UVM and UVM Progressives urged the Board of Trustees to stop investing in fossil fuel companies and invest in renewable energy instead.
Yes, UVM completed exiting all direct investments in fossil fuels ahead of schedule, as well as one private equity investment that was linked to fossil fuels.
Yes, UVM has also divested from companies involved in the Darfur genocide, cluster munitions, depleted uranium weapons, tobacco, and companies doing business with the governing regime of Sudan.
UVM has committed to carbon neutrality by 2030 and will continue investing in opportunities that focus on sustainability, climate change mitigation, and other ESG issues.
