Stanford University has announced that it will be divesting its $18.7 billion endowment from direct holdings of coal company stock.
This is great news for the campaign at U of T, given the size of the endowment and the credibility of the school.
The divestment campaign in general has huge potential to snowball, as each decision to divest makes it easier for other schools to make the same choice.
Author: Milan
In the spring of 2005, I graduated from the University of British Columbia with a degree in International Relations and a general focus in the area of environmental politics. Between 2005 and 2007 I completed an M.Phil in IR at Wadham College, Oxford. I worked for five years for the Canadian federal government, including completing the Accelerated Economist Training Program, and then completed a PhD in Political Science at the University of Toronto in 2023.
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Stanford Becomes First Major University to Divest From Coal-Mining Companies
Stanford to Purge $18 Billion Endowment of Coal Stock
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The university said it acted in accordance with internal guidelines that allow its trustees to consider whether “corporate policies or practices create substantial social injury” when choosing investments. Coal’s status as a major source of carbon pollution linked to climate change persuaded the trustees to remove companies “whose principal business is coal” from their investment portfolio, the university said.
That is very exciting and hopefully the wave of the future.
It is interesting and heartening that Stanford made this decision. I believe that California tends to be a leader in recognizing the value and appropriateness of restraining commerce so as to benefit the environment. An example was its leadership on emission controls. That led to much wider application and acceptance of such controls.
Inside Stanford’s Coal Divestment Decision
On May 6 Stanford University announced its decision to divest from coal companies. Student advocates rejoiced, and investors took notice. As the deputy director of the Stanford Steyer-Taylor Center for Energy Policy and Finance, I saw my inbox quickly fill with commentary. Although the reactions ranged from euphoric to critical, there were two consistent threads: misinformation and misunderstanding.
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The BOT doesn’t manage the endowment. That’s the job of the Stanford Management Co. (SMC), which manages the university’s endowment and other financial and real estate assets, which together are referred to as the merged pool and amounted to approximately $21.9 billion as of June 30, 2013. The BOT appoints the Board of Directors that governs SMC. So in effect, SMC serves at the pleasure of the BOT.