On September 17, the Regents announced that they will divest both the endowment and pension funds from fossil fuels. The announcement was made in an Opinion piece in the Los Angeles Times, authored by UC Chief Investment Officer Jagdeep Singh Bachher and Chairman of the UC Regents’ Investment Committee Richard Sheman. According to the authors, the $13.4 billion Endowment will be fossil-free by the end of this month, and the $70 billion Pension Fund soon thereafter. The divestment plan will include not only stocks but also the bonds that fossil fuel companies use to borrow money to finance exploration and development of new oil and gas reserves. Divestment will include both directly held assets and those in externally-managed funds, and private as well as public equities. Finally, divestment will include not only the corporations holding carbon reserves, but also the companies that are focused on the extraction, transportation and burning of such fuels, both smaller companies and major corporations.
This comprehensive divestment represents the culmination of a seven-year campaign by thousands of UC students, faculty, staff and alumni who have repeatedly urged UC to consider both the moral implications and financial dangers of continued fossil fuel investments. While we join the celebration of the successful anti-fossil fuel mobilization, we think it is important to stay vigilant in watching how the divestment plan is carried out. We’d also urge the UCOP and its Investment Office to keep the UC community informed of the plan’s implementation. Information transparency is key to sustain the success.
You-tien Hsing from the Board of the Berkeley Faculty Association