In a symbol of the times, America’s biggest “oil family”, the Rockefellers, has announced it will get rid of any investments or holdings in fossil fuels from its $860 million charitable fund, and target clean energy instead.
The announcement is part of a $50 billion pledge
by over 180 institutions to cut oil, natural gas, and coal from
their portfolios and redirect investment into clean energy.
“Our immediate focus will be on coal and tar sands, two of
the most intensive sources of carbon emissions,” the
statement said, adding that investment in the two sectors will be
reduced to less than 1 percent of the total portfolio by the end
of 2014.
Coal and tar sands are two of the biggest carbon emitters.
The Rockefeller Brothers Fund was established in 1940 from wealth
acquired through the family’s company Standard Oil, once the
world’s largest oil refiner.
Monday’s announcement comes ahead of today’s United Nations
summit on climate change, where 120 global leaders, including US
President Barack Obama, have gathered to discuss how to combat
carbon emissions and global warming.
ExxonMobil, Conoco, and Chevron are the modern day successors of
the original Standard Oil, which was such a big oil company the
US Supreme Court said it violated antitrust laws, and it was
broken up in 1911.
“John D Rockefeller, the founder of Standard Oil, moved
America out of whale oil and into petroleum,” Stephen
Heintz, president of the Rockefeller Brothers Fund, said, saying
that if John D. Rockefeller were alive today, he would invest in
clean, renewable energy.
About 7 percent of the fund is currently invested in dirty fossil
fuels.
In 2013, the Rockefeller charity gave over $6 million in grants
to sustainable development projects.
Many American universities have also cut their ties with ‘Big
Oil’, most prominently Stanford and Harvard, which both have
multi-billion dollar endowments. The University of California
school system says it won’t divest from fossil fuels, an
unpopular choice amongst students.
A nice gesture
The switch won’t be immediate or apply to the full $860 million
in charitable funds. The “divestment” will only apply to
10 percent of the endowment, an approved commitment from the
fund’s board of trustees in line with the organization’s
sustainable development goals.
“There may continue to be minimal investments in our
portfolio in those energy sectors,” the statement said,
clarifying it will be a “two-step” process.
The divestment program will be conducted with the overall
organization’s finances in mind; that is they won’t divest if
such a move will negatively alter the charity’s day-to-day
operations.
Article source: http://rt.com/business/189928-rockefeller-oil-divest-fossil-fuels/
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