divestment
Cornell to Effectively Divest from Fossil Fuels, Trustees Vote
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The Board of Trustees voted to institute a moratorium on new private investments focused on fossil fuels, answering the requests of all five constituent assemblies.
The Cornell Daily Sun (https://cornellsun.com/tag/climate-justice-cornell/page/2/)
The Board of Trustees voted to institute a moratorium on new private investments focused on fossil fuels, answering the requests of all five constituent assemblies.
While the University moves towards social distancing in the light of the global COVID-19 outbreak, Climate Justice Cornell plans to move their movement online.
Climate Justice Cornell protesters disrupted traffic near North and South Campus bridges on Monday afternoon, where they faced angry motorists and the Cornell University Police Department.
To the Editor:
Climate Justice Cornell, a campus organization agitating for Cornell University to divest its endowment from energy companies, recently hosted socially responsible investing specialist Katelyn Kriesel to discuss the economics argument for fossil fuel divestment. As a skeptic of politically-motivated divestment campaigns, I was curious to hear the financial case for why endowments should liquidate any holdings they have in energy companies. Historically, the primary obstacle to endowments adopting an anti-fossil fuel stance is the pesky phrase “fiduciary duty.” In a nutshell, fiduciary duty obliges trustees to act in the best interest of the trust beneficiaries, which in this case means maximizing the risk adjusted return of Cornell’s endowment. Adopting the stance advocated by CJC would entail a blanket mandate to eschew the energy sector, which could trigger legal action since one could argue, with some justification, that a categorical sector ban may not align with beneficiaries’ interests. Realizing this, divestment advocates take a different tack by building a so-called “financial case” for the university to divest. As Ms. Kriesel outlined, the energy sector has underperformed the S&P 500 index in the past several years. (For the sake of argument, we will ignore the half a dozen errors in her methodology which used three prominent energy companies as a proxy for sector performance, the S&P 500 as a benchmark and disregarded dividends and risk.) On the basis of this information, she argues, universities should divest because energy companies have performed poorly in the past.
To the Editor:
A Feb. 16th letter to the editor in this section claimed that “[d]ivestment would harm Cornell, reduce its influence and, most significantly, do absolutely nothing to fight climate change.” However, the analysis was incomplete and misleading. Divestment is a moral imperative for the University and a meaningful sanction for the fossil fuel industry. It’s hard to believe that Cornell’s endowment would suffer by removing assets which effectively did not grow over 10 years. Selling fossil fuel stocks, coupled with the shrinking investor market, makes them less valuable.
Fossil fuel divestment is finally a hot topic. With no small thanks to the protesters who blocked roads and occupied Ho Plaza earlier this month, the movement has been ushered from the margins of campus political life into relevance. Though people may not necessarily know what ‘divestment’ means, they’ve at least heard about it, read about it or had it shouted at them. However, the job is far from done. The goal of the fossil fuel divestment movement is, obviously, to divest.
Student climate activists protested for four hours on Feb. 13 — staging a “wedding” and blocking traffic — urging Cornell to divest from fossil fuels. The protests continued on Feb. 19, when protestors blocked traffic again.
Climate Justice Cornell blocked campus roads for the second time in less than seven days, demanding that Cornell divest from the fossil fuel industry and disrupting the commutes of students finishing afternoon classes on Wednesday afternoon.
Cornell Climate Justice responds to criticism over on campus protest.
On Friday, a coalition of student activist groups flooded Ho Plaza, where organizers gave speeches and led chants, and then the crowd marched through the streets before returning to Day Hall to stage a sit-in.