Following Harvard, MacArthur Will More Nonprofits Divest?

Sep 23, 2021, 8:00 PM

(from Reuters and Inside Higher Ed) The $8.2 billion MacArthur Foundation said on Wednesday it would divest from fossil fuel holdings with changes to its equity indexes, becoming the largest foundation to move money away from the oil and gas sector. Other institutions including Harvard University and the Maine state pension system have taken similar steps lately amid mounting climate change concerns.

Social pressure to divest combined with legal pressure may push more educational institutions to move away from fossil fuel investments. Student divestment advocates at Boston College and Harvard both filed a complaint with the Massachusetts attorney general arguing that investment in fossil fuels violates the fiduciary duties of their institutions. Harvard student advocates stormed the field during a 2019 football game, and a strong majority of faculty signed a petition, leading some to believe the pain of divesting was less than the pain of continuing to respond to advocates.