UMass Foundation divesting from investments in coal companies

BOSTON – The University of Massachusetts Foundation said it is divesting from direct investments in coal companies, continuing UMass’ focus on climate change issues.
The foundation, which oversees approximately $770 million in endowment assets for the UMass system, said that it will continue to evaluate ways to manage the endowment in a manner that promotes environmental sustainability and socially responsible investing.
“We believe this action sends an important message about the urgency of climate change and the university community’s commitment to addressing it,” Charles J. Pagnam, executive vice president of the UMass Foundation, said in a statement. “At the same time, our policy protects the foundation’s primary mission of maximizing the investment returns on funds donated for research, academic programs, financial aid and other purposes.”
According to a news release from the foundation, the divestment decision is the latest step that the foundation has taken to adopt socially responsible investing practices. Those practices include establishing a social choice endowment option for donors.
The steps the foundation is taking on divestment are consistent with the university’s mission. In 2007, the university president and all five campus chancellors signed the American College and University Presidents Climate Commitment. Since then, UMass has reduced its carbon emissions by an average 4 percent per year.
The divestment decision by the foundation’s board of directors followed a process that began with the creation of a Socially Responsible Investing Advisory Committee in November 2014 to study social investment issues. The eight-member committee includes faculty, administrators, alumni and students.
In March, the UMass Fossil Fuel Divestment Campaign submitted a formal petition asking the foundation to divest.
After meeting with the group and researching the issue, the Socially Responsible Investing Advisory Committee recommended that the board divest.
In the Ocean State, the Rhode Island School of Design remains the only higher education institution to divest. The RISD Board of Trustees voted last May after a two-year study to divest direct endowment investments in fossil-fuel extraction company stocks and bonds.
On a local level, Providence Mayor Jorge O. Elorza also announced in July that the city will no longer invest pension funds in the top 15 carbon-emitting coal companies in the country.

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