As we all stay home and reflect on the disruption caused by COVID-19, students might have missed an announcement from the U of M: David…
Although the reasons outlined above make a strong moral case for divestment, fossil fuel divestment also makes economic sense. A recent news article in the Guardian confirmed that fossil fuel free funds outperformed conventional funds by 1.2 per cent yearly according to MSCI, a U.S.-based provider of equity, fixed income and hedge fund stock market indices. Even former Shell chairman Mark Moody-Stuart said “divestment is a rational approach […] If you think your money can be used somewhere else, you should switch it. Selective divestment or portfolio switching is actually what investors should be doing.”
There are choices to be made in the near future that will have a great impact. The choices themselves are clear: we either take action toward a better future, or we allow our universities to support that future’s destruction. The right choice is clearly the former – we must choose to divest.