Prestigious University Harvard, The richest in the United States, announced a significant change in its investment management in a letter posted on the university’s website last Thursday, stating that it intends to completely abandon investments in industries that research or develop polluting fuels. “The university’s management does not invest in fossil fuels and does not intend to make such investments in the future,” university president Larry Baku said in a letter. Instead, the university will divert its investments to support a green, carbon.free economy.
This move comes after years of a stubborn struggle by students, who call for the immediate abandonment of polluting investments. Last year the university committed to a green policy, promising to reach zero investment in polluting industries by 2050. However, for the activist student group it was not fast enough – last March they filed a complaint through a law firm, in an attempt to force the university to sell their polluted assets in $ 838 million.
Harvard is following in the footsteps of its members of the Ivy League – the Association of Leading and Prestigious Universities – the University of California and the University of Cambridge, both of which have pledged to abandon investments in the fossil fuel industry and divert their investment to green investment. “Given the need to turn the economy green and our responsibility to make long.term investments that will support university and research, we view the polluting investments as unbalanced,” Baku said in his letter. Harvard University has a legacy of investing in private equity.linked funds, but they are less than 2% of its investment fund, and that, too, is going to stop.