Professional Documents
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ASU Divestment
ASU Divestment
ASU Divestment
gime.
climate change.
While this campaign did not single handedly end Apartheid, South African Archbishop
fossil fuels.
climate crisis
The first number comes from the 2009 CopenOne would expect that a leader in sustainability hagen Conference, where 167 countries recognized
and multiple conversations with the ASU Foundation perature should be below two degrees Celsius. To
the organization that handles ASUs endowmentI
found that to not be the case and took it upon myself to bon emissions cannot exceed the second number, 565
understand and unwind the complexities that prevent
companies.
extraction or use.
pursue.
projects.
investment strategies.
U.S.
fossil fuel investments dangerous. An Oxford University study defined stranded assets as assets that
ment. In Shangraws opinion, the endowment represented only one of the Universitys and the Founda-
responsible indicators
such as human rights,
treatment of labor, and,
yes, carbon emissions.
Shangraw explained that
this tool could help move
gies.
Conclusion
stitutions have already divested or partially divested from fossil fuels. Last, ASU and the Foundation can work
together with their current investment managers, or seek out new ones, to develop a low carbon investing strategy that does not jeopardize the Universitys fiduciary obligations. For instance, Morgan Stanley Capital and
other investment firms offer sustainable or low carbon investment strategies. Fossil fuel companies comprise
only 11 percent of the S&P 500 so divestment hardly restricts investment strategies.
The Universitys endowment is one quiver in the arrow, but when our society is dealing with a challenge as pervasive as climate change, it needs all the arrows available. When considering divestment, University and Foundation officials should reflect not on my words, but ASU President and Foundation board member Michael Crows: Do you replicate what exists, or do you design what you really need? ASU has already
changed the university model through its interdisciplinary approach and it is time that kind of reevaluation take
place concerning the Universitys endowment, to create what Mr. Crow calls the maximum societal impact.
End Notes
What is Fossil Fuel Divestment, Fossil Free, http://
gofossilfree.org/what-is-fossil-fuel-divestment/ (accessed February 1 2015). For a full list of commitments, see ibid, Divestment
Commitments. For Tutu quote, see Divesting From Injustice,
Guardian 13 June 2010. http://www.huffingtonpost.com/
desmond-tutu/divesting-from-injustice_b_534994.html
(accessed April 1 2015).
See the School of Sustainability website at https://
schoolofsustainability.asu.edu/about/school-of-sustainability/
The numbers come from Carbon Tracker Initiative, a project of
the non-profit Investor Watch. Its report has been utilized by
several large investment firms and banks, including Standard &
Poor and HSBC, to calculate risk to carbon exposure. The total
reserves do not include shale gas. See, Bill McKibben, Global
Warmings Terrifying New Math, Rolling Stone August 2 2012.
http://www.rollingstone.com/politics/news/global-warmingsterrifying-new-math-20120719?page=2 (accessed March 3
2015).
For an example of a often cited study purporting the financial risk involved with divestment see Daniel Fischel, Fossil
Fuel Divestment: A Costly and Ineffective Investment Strategy. The study was funded by the Independent Petroleum
Association of America.
http://www.smithschool.ox.ac.uk/research-programmes/
stranded-assets/ (accessed March 20, 2015).
Sheila M Olmstead, Applying Market Principles, 220-221
and Henrik Selin and Stacey D. VanDeveer, Global Climate
Change: Beyond Kyoto, in Kraft and Vig, Environmental
Policy, 287-292. As of 2013, there are three regional cap and
trade programs. For example, ten Northeastern states created the Regional Green House Gas Initiative and in 2009,
and California launched a cap-and-trade program. See, Barry
Rabe, Racing to the Top, the Bottom, or the Middle of the
Pack? The Evolving State Government Role in Environmental
Protection, in Kraft and Vig, 32-49 and Ken Portney,
Sustainability in American Cities: A comprehensive look at
what cities are doing and why, in Daniel Mazmanian and
Michael Kraft, Toward Sustainable Communities, 232-236.
For carbon pricing scheme statistic, see Fabian, Support
low-carbon investment, 28.
For other examples, see MSCI ESG Research Team, Responding to the Call for Fossil-fuel Free Portfolios, December 2013
and IMPAX Asset Management, Beyond Fossil Fuels: The
Investment Case for Fossil Fuel Divestment, 2013. See Carbon Trackers website for a multitude of reports on the matter of unburnable carbon.
The S & P study was commissioned by the Associated Press.
See Tom Zeller Jr., Fossil Fuel Divestment: Smart Bet or
Losing Strategy, Forbes February 10 2015. (accessed March
24, 2015).
Atif Ansar , Ben Caldecott, James Tilbury, Stranded assets
and the fossil fuel divestment campaign: what does divestment mean for the valuation of fossil fuel assets?, Oxford
University Stranded Assets Programme at the University of
Oxfords Smith School of Enterprise and the Environment
(2013), 53-57, 66-67.
For Pitzer College divestment see Pat Morrison, Why Pitzer
College decided to quit carbon, Los Angeles Times October
21, 2014. http://www.latimes.com/opinion/op-ed/la-oemorrison-gould-20141021-column.html#page=1 (accessed
March 9 2015). For the University of Sydney, see Sydney
University announces plan to reduce fossil fuel invest-