A hot topic these days on university campuses and among capital endowment managers for cultural and philanthropic organizations is whether or not to divest from fossil fuel companies. While this is a good way to express an opinion about an institution’s values, it will not necessarily contribute to the kind of change that would be a much better expression of those values. It says how you don’t like to earn a return, but it doesn’t say anything about how you can make a return investing through an aligned manner.
Instead, consider an investment strategy that supports companies which not only improve conditions for sustainability, but also offer a means for large institutions and their stakeholders to experience the positive impact of those investments firsthand. For example, a university endowment strategy that includes investments in building-efficiency solutions would earn attractive returns while also significantly benefiting the campus community.
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