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BOSTON, Sept.22 (Reuters) – The $ 8.2 billion MacArthur Foundation on Wednesday said it would divest from its fossil fuel holdings by changing its stock indexes, becoming the largest foundation to divert money from the oil and gas industry.
Other institutions, including Harvard University and the State of Maine Pension System, have recently taken similar steps amid growing concerns about climate change, although some investors prefer to hold company shares. energy sources to find ways to reduce emissions. Read more
Two years ago, the John D. and Catherine T. MacArthur Foundation of Chicago suspended new investments in private funds that invest in oil and gas exploration.
MacArthur Chairman John Palfrey said on Wednesday he would go further and shift his exposure from equities to indices that exclude companies with fossil fuel reserves.
The foundation also uses externally managed funds and has told companies it wants to move away from fossil fuels, Palfrey said in an interview.
“It’s not a simple question with an endowment of $ 8 billion invested in long-term managed funds,” he said. “The great news is that we are going down this road. We are getting there, it is not something you can do easily.”
Ellen Dorsey, executive director of the Wallace Global Fund, another philanthropic organization, which tracks the region, said MacArthur is the largest foundation in the world to publicly commit to divestment from fossil fuels to date.
A similar move in 2016 by the Rockefeller Family Fund was notable as a century ago John D. Rockefeller Sr. made his fortune running Standard Oil, a precursor to Exxon Mobil (XOM.N).
The MacArthur Foundation had total assets of $ 8.2 billion as of December 30. The amount of his fossil fuel holdings was not immediately available, a spokesperson said.
The foundation is known for its unconditional “genius” awards of $ 625,000. It has also funded groups like the Sierra Club, which Palfrey admitted criticizing these efforts for his investments.
Reporting by Ross Kerber Editing by Marguerita Choy
Our Standards: Thomson Reuters Trust Principles.
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