Stanford to divest from coal

2014-05-06

in Economics, Politics, The environment

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.

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{ 5 comments… read them below or add one }

. May 7, 2014 at 4:14 pm
. May 7, 2014 at 4:18 pm

Stanford to Purge $18 Billion Endowment of Coal Stock

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.

alena May 11, 2014 at 11:55 pm

That is very exciting and hopefully the wave of the future.

oleh May 18, 2014 at 11:11 am

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.

. May 31, 2014 at 12:45 pm

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.

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.

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