In May of last year, the Foundation that oversees the University System of Maryland’s $1 billion endowment announced that it will stop investing directly in coal, oil, and natural gas companies. Now we ask, have they kept their word?
In a statement released on May 27, 2016, the University System of Maryland Foundation committed to doing five things:
Make no direct investments in the Carbon Underground 200 companies
Establish a position on the investment staff to seek out investments in renewable energy
Become a signatory to the United Nations Principles for Responsible Investment
Join the International Endowments Network
Renew its appeal to investment fund managers to consider the carbon footprints of the companies they invest in and to choose renewable energy investments over fossil fuel investments, all else being equal
Though the Foundation has done all five of those things, they fall short of achieving the ultimate goal: a fossil free endowment fund that truly reinforces our commitment to sustainability and justice.
To begin with, the foundation did not have any direct investments in fossil fuels. Why? Because the University System of Maryland does have direct investments. Our endowment fund is based on an indirect investment system, in which the Foundation hires fund managers who then decide which companies to invest funds in. So, it is misleading to state that we are divesting from direct investments, when we had none to begin with. The premise for that statement relies on the transition of our endowment fund to a direct investment system, but they have released no public updates on when we can expect that process to be complete.
Unlike other institutions, such as UC Berkeley, the University System of Maryland has declined to set up a social responsibility fund, whereby people can donate money and be sure it is not going to companies that participate in unjust activities. Faculty and staff also lack options in regard to what their pension fund invests in.
Climate data is conclusive and the waffling by the USMF does nothing except hurt us and hurt our future as a planet. Investments in "dirty" energy are losing value fast, and values will fall even more drastically as markets shift toward renewable energy. If it is difficult to find buyers for carbon stocks now, just imagine what it'll be like in a few years. The system can't afford to risk our scholarships and finances on industries with unreliable and uncertain futures.
What we need now is public accountability. We need these statements and regular reports to be accessible on the Foundation website. So far, they have declined to publish reporting on the process of transitioning our endowment away from fossil fuels. Without a publicly accessible tool to verify this, we have no way of knowing that our endowment is any greener than it was a year ago. Given the current political and market situation, we know how important it is now to have accountability and transparency. If we claim to make sustainability one of our primary goals as a university, how can we continue to consciously fund ventures that inhibit our ability to fulfill that mission?
http://www.baltimoresun.com/news/maryland/education/bs-md-usmf-divestment-20160628-story.html
http://www.dbknews.com/2017/04/16/fossil-fuel-divestment-umd-usm/
http://www.dbknews.com/2016/03/31/divest-from-dirty-energy/
http://www.dbknews.com/2016/06/30/umd-fossil-fuel-investment-divestment/