Tufts University will prohibit direct investments in coal and tar sands companies as part of a multi-part commitment to advance sustainability and address the urgent crisis of climate change. Additional actions include investing up to $25 million in positive impact funds related to climate change over five years and proactively calling on external investment managers to take environmental, social, and governance considerations into account in their investment processes.
The university joins a small number of U.S. colleges and universities with similar-sized endowments of approximately $2 billion or more to prohibit investments in coal and tar sands companies.
From campus operations to the classroom, sustainability at Tufts is a collective effort spanning departments, offices, schools, and campuses. The plan, approved by the university’s Board of Trustees, is in keeping with the university’s long history of leadership within higher education on issues of sustainability, ranging from initiating the Talloires Declaration in 1990 to its work today to minimize its carbon footprint, foster groundbreaking research and scholarship, and prepare students to become the next generation of leaders on climate change.
As part of its multi-part commitment to promoting further change beyond the university and enhanced transparency and accountability within it, Tufts will:
Invest $10 million to $25 million in positive impact funds related to climate change over the next five years. A minimum of $10 million will be allocated, with the remainder structured as a match to encourage contributions to the endowment from those who are passionate about climate action.
Proactively communicate with all current and future investment managers to inform them of Tufts’ decision to prohibit direct investment in coal and tar sands companies, impress upon them the university’s belief in the urgency of climate change, and encourage them to further integrate climate-change risk and other environmental, social, and governance considerations into their investment processes.
Enhance transparency by creating a dashboard that will report on the university’s progress toward these actions as well as other relevant information regarding action on climate change and fossil fuels.
Evaluate progress in light of the rapid pace of change in the fields of environmental sustainability, energy production/consumption, and investing, and revisit these actions in two to five years.
Further integrate and advance the university’s efforts on environmental sustainability. The university would coordinate these efforts with the Campus Sustainability Council to connect their work in support of a broader, university-wide climate change mitigation plan.
“Tufts is committed to the mission of addressing the most consequential challenges of our time, including the urgent global crisis of climate change,” said President Anthony P. Monaco. “We are taking practical and symbolic steps to advance the cause of sustainability and positive environmental impact, both at Tufts and beyond.”
The university’s commitment follows the recommendations of a Responsible Investment Advisory Group (RIAG) composed of students, faculty, and staff that convened in the fall of 2020 to study the issue of potential divestment. The group reviewed actions taken by other universities and colleges as well as measures beyond divestment to promote sustainability, explored potential options and ramifications, and issued its recommendations [PDF] to the Board of Trustees this winter.
Under the plan, Tufts will prohibit direct investments in 120 coal and tar sands companies with the largest reserves. The university currently has no direct holdings in the restricted companies, and the change in investment policy will prevent it from acquiring any.
This restriction, which would cover virtually all public reserves in this space and most major energy companies, would apply to the Investment Office’s internally managed accounts and be implemented within six to 12 months. The companies in question would be determined by a list updated annually by an established third party commonly used by other universities for these purposes.
The university also will seek to influence the holdings in its other investments that it does not directly control, such as commingled funds, by attempting to move investment managers toward change.
“It is our hope that our actions and our voice, in combination with peer universities and others, will cause investment managers to accelerate their shift from fossil fuel investments to portfolios with more sustainable investments,” said Robert R. Gheewalla, A89, trustee and RIAG chair.
Faculty research related to climate change and climate change solutions can be found in virtually every school at the university. Tufts offered 585 courses related to sustainability over the past two years and seven graduate and undergraduate degree programs in sustainability and related fields. Last year, Tufts welcomed the first cohort of students in the master’s of science in sustainability program.
“The urgency of climate change is imperative, and the steps we are announcing today complement the many university programs on sustainability advanced through our scholarship, research, teaching, and campus operations,” added Monaco.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
