Rutgers University has decided to discontinue its investments in fossil fuels following approval of the school’s Board of Governors and Board of Trustees.
An ad hoc committee involving students, faculty, and staff members first reviewed a formal request sent by Endowment Justice Collective, a student group that advocates for ethical divestment from fossil fuels. The final verdict was issued after the committee submitted its recommendations.
“While the university has taken steps recently to limit investments in this area, approving a policy of divestment from fossil fuels is a significant expression of the values of our institution and our broader community,” said President Jonathan Holloway.
Rutgers listed its pending action points, such as ending new investments, redirecting funds to new investment opportunities that are environmentally-friendly, and exiting “all currently held private fossil fuel investments within 10 years.”
Rutgers Board of Trustees Co-Vice Chair Tilak Lal said, “To ensure transparency of this initiative, the Investment Office will report on the progress of this divestment annually.” Officials also revealed that the university is interested in renewable energy and energy efficiency initiatives.
Fossil Fuels and Endowment
Currently, fossil fuel investments hold about five percent of Rutgers’ $1.6 billion endowment, and 60 percent comes from private funds. Board of Governors Chair Mark Angelson praised the outcome of the review and the diversity of community members involved in deliberations.
“Divesting from fossil fuels aligns with our scarlet values and with the university leadership on important issues that students rightfully expect from Rutgers. Students like me have expressed our desires to see the university rapidly decrease its carbon footprint and will be proud to see Rutgers taking this step,” said Zunaira Wasim, a Rutgers University-New Brunswick junior who served on the ad hoc committee.
There has been a growing trend among US universities to do away with environmentally damaging ventures. Rutgers has joined Columbia University, Seattle University, and the University of Michigan in divesting from fossil fuel holdings.