Harvard University’s $42 billion endowment will stop investing in the fossil fuel industry

Harvard University’s $42 billion endowment will stop investing in the fossil fuel industry

Harvard's multi-billion-dollar endowment will end investment in the fossil fuel industry, the university said Thursday, following a lengthy push by environmental activists for the institution to financially divest from assets they say contribute to climate change. Harvard President Lawrence Bacow said the Harvard Management Company does not plan to make fossil fuel investments in the future and he noted that Harvard said in February that HMC had no direct investments in companies that explore for or develop further reserves of fossil fuels. HMC oversees the university's $42 billion endowment and related financial assets. "Given the need to decarbonize the economy and our responsibility as fiduciaries to make long-term investment decisions that support our teaching and research mission, we do not believe such investments are prudent," said Bacow. Bacow said HMC has legacy investments as a limited partner in a number of private equity funds with holdings in the fossil fuel industry. "These legacy investments are in runoff mode and will end as these partnerships are liquidated," he said, adding that HMC hasn't made new commitments to the limited partnerships since 2019. HMC's indirect investments in the fossil fuel sector make up less than 2% of the endowment. Fossil Fuel Divest