What is divestment?
Divestment is the selling of assets that do not adhere to the social, ethical, or environmental standards of the investor. Throughout history, divestment has been used as a tool to accomplish moral and social change, most prominently against South African apartheid. After widespread student activism in the 1980s, US institutions shifted approximately $20 billion worth of investments away from companies that did business with South Africa, significantly weakening the credibility and economic viability of the apartheid regime (Hartman). South African leaders like Nelson Mandela credited international divestment campaigns with being one of the key factors leading to the collapse of apartheid in the early 1990s.
Today, socially responsible individuals, organizations, and institutions are once again using divestment as a tool to combat a grievous injustice: climate change caused by the burning and extraction of fossil fuels. According to the Intergovernmental Panel on Climate Change (IPCC), “Warming of the climate system is unequivocal, and since the 1950s, many of the observed changes are unprecedented over decades to millennia. The atmosphere and ocean have warmed, the amounts of snow and ice have diminished, sea level has risen, and the concentrations of greenhouse gases have increased” (IPCC). As the environmental and human impacts of climate change grow more pronounced and widely known, it is becoming increasingly difficult for socially responsible institutions to justify holding investments in the oil, coal, and gas companies which bear primary responsibility for the problem.
Today, socially responsible individuals, organizations, and institutions are once again using divestment as a tool to combat a grievous injustice: climate change caused by the burning and extraction of fossil fuels. According to the Intergovernmental Panel on Climate Change (IPCC), “Warming of the climate system is unequivocal, and since the 1950s, many of the observed changes are unprecedented over decades to millennia. The atmosphere and ocean have warmed, the amounts of snow and ice have diminished, sea level has risen, and the concentrations of greenhouse gases have increased” (IPCC). As the environmental and human impacts of climate change grow more pronounced and widely known, it is becoming increasingly difficult for socially responsible institutions to justify holding investments in the oil, coal, and gas companies which bear primary responsibility for the problem.
Who has divested?
Why divest?
Divestment is inline with the University of Montana's mission statement, which states that "the University of Montana models a pathway to economic, financial, environmental, and cultural sustainability, one of its core values... the University's initiatives ultimately seek to enhance students' understanding of the interconnectedness of ecological, social, and economic issues".
Divestment is supported by students. In February of 2014, the Associated Students of University of Montana passed a resolution in support of divestment, urging President Engstrom to create a committee to investigate divestment.
Divestment is consistent with the University's climate commitments. In 2007, President Dennison signed The American Colleges and Universities President’s Climate Commitment, committing the university to the ambitious goal of complete carbon neutrality by 2020. In 2010, he signed a comprehensive “Climate Action Plan” geared towards reaching this goal. Students and staff have worked tirelessly towards carbon neutrality, even instituting a student sustainability fee. A university committed to carbon neutrality should not have $7-8 million invested in companies that are furthering climate change.
Divestment fits with the University of Montana's environmentally-forward image.. The University of Montana has wide variety of environmental programs help give UM its distinct character. Key among these programs is the College of Forestry and Conservation, established in 1913 as one of the first schools accredited by the Society of American Foresters. Other examples of UM’s rich environmental involvement include the Environmental Studies Program, the Center for Environmental Health Sciences, the UM Forum for Living with Appropriate Technology (the F.L.A.T.), the Program in Ecological Agriculture and Society (PEAS Farm), the Climate Change Studies minor, the Kless Revolving Energy Loan Fund, and the Natural Resources and Environmental Law Program to name but a few.
The interdisciplinary Climate Change Studies minor is the first of its kind in the country, and UM is home to Nobel Laureate Dr. Steve Running, one of the authors of the 2007 IPCC (Intergovernmental Panel on Climate Change) Report.Divestment offers a compelling new strategy to address the monumental challenge of anthropogenic climate change. UM needs to lead, not follow, in this undertaking, lest it lose its coveted status as an environmentally conscious university.
A Public commitment to divestment would likely increase out-of-state enrollment. UM’s beautiful natural setting and longtime commitment to ecology, conservation, environmentalism, and sustainability attracts students from around the world interested in environmental issues. If UM committed to divesting from fossil fuels, it would become the second public university in the country to do so and a leader in its class. An early commitment to divestment would increase the number of out-of-state students interested in attending UM and relieve the financial pressures associated with the decline in enrollment.
There is good reason to believe enrollment would increase. Most universities and colleges committed to divestment have done so very recently and have yet to track the effect on their enrollment numbers. However, both Unity and Sterling College have already seen an increase in enrollment after committing to divestment.
Reinvestment could strengthen Montana’s economy and make a powerful statement. Direct investment in Montana enterprises would have immediate positive implications for strengthening the local economy and jumpstarting Montana’s inevitable transition from fossil fuels to more sustainable sources of energy. Investment in these technologies would help ease the transition for Montanans.
As a university situated in a state with a significant fossil fuel sector, we also have a unique opportunity to lead the way and inspire a national conversation on fossil fuels. If we divested, many other universities would likely follow suit.
Divestment is supported by students. In February of 2014, the Associated Students of University of Montana passed a resolution in support of divestment, urging President Engstrom to create a committee to investigate divestment.
Divestment is consistent with the University's climate commitments. In 2007, President Dennison signed The American Colleges and Universities President’s Climate Commitment, committing the university to the ambitious goal of complete carbon neutrality by 2020. In 2010, he signed a comprehensive “Climate Action Plan” geared towards reaching this goal. Students and staff have worked tirelessly towards carbon neutrality, even instituting a student sustainability fee. A university committed to carbon neutrality should not have $7-8 million invested in companies that are furthering climate change.
Divestment fits with the University of Montana's environmentally-forward image.. The University of Montana has wide variety of environmental programs help give UM its distinct character. Key among these programs is the College of Forestry and Conservation, established in 1913 as one of the first schools accredited by the Society of American Foresters. Other examples of UM’s rich environmental involvement include the Environmental Studies Program, the Center for Environmental Health Sciences, the UM Forum for Living with Appropriate Technology (the F.L.A.T.), the Program in Ecological Agriculture and Society (PEAS Farm), the Climate Change Studies minor, the Kless Revolving Energy Loan Fund, and the Natural Resources and Environmental Law Program to name but a few.
The interdisciplinary Climate Change Studies minor is the first of its kind in the country, and UM is home to Nobel Laureate Dr. Steve Running, one of the authors of the 2007 IPCC (Intergovernmental Panel on Climate Change) Report.Divestment offers a compelling new strategy to address the monumental challenge of anthropogenic climate change. UM needs to lead, not follow, in this undertaking, lest it lose its coveted status as an environmentally conscious university.
A Public commitment to divestment would likely increase out-of-state enrollment. UM’s beautiful natural setting and longtime commitment to ecology, conservation, environmentalism, and sustainability attracts students from around the world interested in environmental issues. If UM committed to divesting from fossil fuels, it would become the second public university in the country to do so and a leader in its class. An early commitment to divestment would increase the number of out-of-state students interested in attending UM and relieve the financial pressures associated with the decline in enrollment.
There is good reason to believe enrollment would increase. Most universities and colleges committed to divestment have done so very recently and have yet to track the effect on their enrollment numbers. However, both Unity and Sterling College have already seen an increase in enrollment after committing to divestment.
Reinvestment could strengthen Montana’s economy and make a powerful statement. Direct investment in Montana enterprises would have immediate positive implications for strengthening the local economy and jumpstarting Montana’s inevitable transition from fossil fuels to more sustainable sources of energy. Investment in these technologies would help ease the transition for Montanans.
As a university situated in a state with a significant fossil fuel sector, we also have a unique opportunity to lead the way and inspire a national conversation on fossil fuels. If we divested, many other universities would likely follow suit.