Divest Duke Urges University to Phase Out Investment in Fossil Fuels
Laura Mistretta is a senior Environmental Science and Policy major at Duke University's Nicholas School of the Environment.
As a student of environmental science I have made it a priority to understand the root causes of climate change in the hopes of contributing to a solution. My classes have highlighted numerous possible points of intervention: scientific research, policy, lifestyle changes and of course education. However, this past year I have been pursuing a solution based in economics and investment, two topics I knew very little about and rarely associated with solving climate change.
I am of course talking about fossil fuel divestment. Though I have known for a while now that burning fossil fuels releases greenhouse gases, which cause climate change, much of the discussion on this topic in my classes focused on the need to research and develop renewable sources of energy rather than challenge the existing energy regime. However this year, I have had the opportunity to do just that as a part of Divest Duke.
Sixty-five percent of the world’s greenhouse gas emissions are a product of burning fossil fuels in order to generate electricity, heat buildings, power vehicles, etc. We all use and depend on fossil fuels on a daily basis. However, the uncomfortable truth is that if we intend to limit the warming of the planet to the Intergovernmental Panel on Climate Change recommended 2°C, 60-80 percent of the current fossil fuel reserves held by the top fossil fuel companies must remain in the ground.
These sobering facts have helped launch fossil fuel divestment campaigns at more than 500 colleges and universities across the nation. Thus far the majority response from administrators and university presidents at the country’s most prestigious academic institutions such as Harvard, Cornell and Brown, has been “No."
The most oft cited reasons that university presidents have given in support of their decision not to divest are:
- If universities sell their shares in the top 200 fossil fuel companies they lose their ability to influence those companies through shareholder advocacy.
- It is hypocritical to divest from fossil fuels when we continue to rely on them in our daily lives.
- Divesting from fossil fuel companies could hurt the endowments’ returns.
In response to the first argument about shareholder advocacy, while it can be an effective way of creating change in regards to fossil fuel companies, their entire business model is based around finding, refining and burning more and more fossil fuels. In order to avoid climate disaster we need to see a major shift in how we produce energy. Shareholder advocacy might work for smaller changes such as fairer labor practices, but we need to send a message to fossil fuel companies that it is socially irresponsible for them to continue operating as they do at a very fundamental level.
Some people have argued that fossil fuel companies have made positive steps by investing in renewable energy projects. However, if you look at the numbers, the top fossil fuel companies have committed a very small portion of their budgets to developing renewable energy, and some have already started pulling out of renewable energy projects. But really the bottom line is, as long as fossil fuel companies continue to seek out new fossil fuel reserves, they are threatening the future of us all.
The second argument regarding the hypocrisy of divesting while we still depend on fossil fuels is quite flawed. Yes, it is unfortunate that we are so dependent on fossil fuels, but we need to start somewhere. Fossil fuel companies are not going to change out of the goodness of their hearts. They need to be shown that people are serious about demanding change.
In our highly market-based economy, money is a powerful force. Removing one’s money from a company is a great way to demonstrate you do not support that company’s practices in a language they will understand loud and clear. Plus, it frees up money to invest in renewable energy projects and research to help speed along the energy transition.
The third argument that divesting from fossil fuels could hurt the endowment is incredibly short sighted. Pressure is already mounting against the fossil fuel companies, particularly the coal industry. The percentage of electricity produced in the U.S. by burning coal is shrinking fast and coal assets are decreasing in price. As divestment campaigns continue to spread and gain traction, it is not unreasonable to think that the same fate awaits oil and gas, causing some financial analysts to warn of an impending “carbon bubble.”
Additionally, as the demand for environmentally responsible investment portfolios increase, it will become easier and easier for major institutions to divest. Furthermore divesting from fossil fuels has the potential to improve endowment returns as a number of divested portfolios have enjoyed increased returns as compared to a typical portfolio including fossil fuels.
Divest Duke is making great strides, having submitted our formal divestment proposal to the Advising Committee on Investment Responsibility. We eagerly await their comments and are committed to continue raising awareness and support on campus until Duke agrees to begin phasing out fossil fuels from their investment portfolio.
No one is saying that divesting from fossil fuels is going to be easy, but I can’t think of a better reason to try hard than to prevent massive climate disruption.
Visit EcoWatch’s CLIMATE CHANGE page for more related news on this topic.
- New Clues Help Monarch Butterfly Conservation Efforts - EcoWatch ›
- Monarch Butterflies Will Be Protected Under Historic Deal - EcoWatch ›
EcoWatch Daily Newsletter
California faces another "critically dry year" according to state officials, and a destructive wildfire season looms on its horizon. But in a state that welcomes innovation, water efficacy approaches and drought management could replenish California, increasingly threatened by the climate's new extremes.
- Remarkable Drop in Colorado River Water Use Sign of Climate ... ›
- California Faces a Future of Extreme Weather - EcoWatch ›
Wisdom the mōlī, or Laysan albatross, is the oldest wild bird known to science at the age of at least 70. She is also, as of February 1, a new mother.
<div id="dadb2" class="rm-shortcode" data-rm-shortcode-id="aa2ad8cb566c9b4b6d2df2693669f6f9"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1357796504740761602" data-partner="rebelmouse"><div style="margin:1em 0">🚨Cute baby alert! Wisdom's chick has hatched!!! 🐣😍 Wisdom, a mōlī (Laysan albatross) and world’s oldest known, ban… https://t.co/Nco050ztBA</div> — USFWS Pacific Region (@USFWS Pacific Region)<a href="https://twitter.com/USFWSPacific/statuses/1357796504740761602">1612558888.0</a></blockquote></div>
By Hui Hu
Winter is supposed to be the best season for wind power – the winds are stronger, and since air density increases as the temperature drops, more force is pushing on the blades. But winter also comes with a problem: freezing weather.
Comparing rime ice and glaze ice shows how each changes the texture of the blade. Gao, Liu and Hu, 2021, CC BY-ND
Ice buildup changes air flow around the turbine blade, which can slow it down. The top photos show ice forming after 10 minutes at different temperatures in the Wind Research Tunnel. The lower measurements show airflow separation as ice accumulates. Icing Research Tunnel of Iowa State University, CC BY-ND
While traditional investment in the ocean technology sector has been tentative, growth in Israeli maritime innovations has been exponential in the last few years, and environmental concern has come to the forefront.
theDOCK aims to innovate the Israeli maritime sector. Pexels<p>The UN hopes that new investments in ocean science and technology will help turn the tide for the oceans. As such, this year kicked off the <a href="https://www.oceandecade.org/" target="_blank" rel="noopener noreferrer">United Nations Decade of Ocean Science for Sustainable Development (2021-2030)</a> to galvanize massive support for the blue economy.</p><p>According to the World Bank, the blue economy is the "sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem," <a href="https://www.sciencedirect.com/science/article/pii/S0160412019338255#b0245" target="_blank" rel="noopener noreferrer">Science Direct</a> reported. It represents this new sector for investments and innovations that work in tandem with the oceans rather than in exploitation of them.</p><p>As recently as Aug. 2020, <a href="https://www.reutersevents.com/sustainability/esg-investors-slow-make-waves-25tn-ocean-economy" target="_blank" rel="noopener noreferrer">Reuters</a> noted that ESG Investors, those looking to invest in opportunities that have a positive impact in environmental, social and governance (ESG) issues, have been interested in "blue finance" but slow to invest.</p><p>"It is a hugely under-invested economic opportunity that is crucial to the way we have to address living on one planet," Simon Dent, director of blue investments at Mirova Natural Capital, told Reuters.</p><p>Even with slow investment, the blue economy is still expected to expand at twice the rate of the mainstream economy by 2030, Reuters reported. It already contributes $2.5tn a year in economic output, the report noted.</p><p>Current, upward <a href="https://www.ecowatch.com/-innovation-blue-economy-2646147405.html" target="_self">shifts in blue economy investments are being driven by innovation</a>, a trend the UN hopes will continue globally for the benefit of all oceans and people.</p><p>In Israel, this push has successfully translated into investment in and innovation of global ports, shipping, logistics and offshore sectors. The "Startup Nation," as Israel is often called, has seen its maritime tech ecosystem grow "significantly" in recent years and expects that growth to "accelerate dramatically," <a href="https://itrade.gov.il/belgium-english/how-israel-is-becoming-a-port-of-call-for-maritime-innovation/" target="_blank" rel="noopener noreferrer">iTrade</a> reported.</p><p>Driving this wave of momentum has been rising Israeli venture capital hub <a href="https://www.thedockinnovation.com/" target="_blank" rel="noopener noreferrer">theDOCK</a>. Founded by Israeli Navy veterans in 2017, theDOCK works with early-stage companies in the maritime space to bring their solutions to market. The hub's pioneering efforts ignited Israel's maritime technology sector, and now, with their new fund, theDOCK is motivating these high-tech solutions to also address ESG criteria.</p><p>"While ESG has always been on theDOCK's agenda, this theme has become even more of a priority," Nir Gartzman, theDOCK's managing partner, told EcoWatch. "80 percent of the startups in our portfolio (for theDOCK's Navigator II fund) will have a primary or secondary contribution to environmental, social and governance (ESG) criteria."</p><p>In a company presentation, theDOCK called contribution to the ESG agenda a "hot discussion topic" for traditional players in the space and their boards, many of whom are looking to adopt new technologies with a positive impact on the planet. The focus is on reducing carbon emissions and protecting the environment, the presentation outlines. As such, theDOCK also explicitly screens candidate investments by ESG criteria as well.</p><p>Within the maritime space, environmental innovations could include measures like increased fuel and energy efficiency, better monitoring of potential pollution sources, improved waste and air emissions management and processing of marine debris/trash into reusable materials, theDOCK's presentation noted.</p>
theDOCK team includes (left to right) Michal Hendel-Sufa, Head of Alliances, Noa Schuman, CMO, Nir Gartzman, Co-Founder & Managing Partner, and Hannan Carmeli, Co-Founder & Managing Partner. Dudu Koren<p>theDOCK's own portfolio includes companies like Orca AI, which uses an intelligent collision avoidance system to reduce the probability of oil or fuel spills, AiDock, which eliminates the use of paper by automating the customs clearance process, and DockTech, which uses depth "crowdsourcing" data to map riverbeds in real-time and optimize cargo loading, thereby reducing trips and fuel usage while also avoiding groundings.</p><p>"Oceans are a big opportunity primarily because they are just that – big!" theDOCK's Chief Marketing Officer Noa Schuman summarized. "As such, the magnitude of their criticality to the global ecosystem, the magnitude of pollution risk and the steps needed to overcome those challenges – are all huge."</p><p>There is hope that this wave of interest and investment in environmentally-positive maritime technologies will accelerate the blue economy and ESG investing even further, in Israel and beyond.</p>
- 14 Countries Commit to Ocean Sustainability Initiative - EcoWatch ›
- These 11 Innovations Are Protecting Ocean Life - EcoWatch ›
- How Innovation Is Driving the Blue Economy - EcoWatch ›