The University of Nebraska will consider the environmental and social impacts of the companies it chooses to invest in following a policy change approved by the Board of Regents on Friday.
NU President Ted Carter said the decision to incorporate “environmental, social and governance†criteria into investment decisions came after 15 months of talks between regents, administrators and students pushing for the university to pull endowed funds from fossil fuel companies.
The policy change, unanimously approved by regents, will only apply to the roughly $370 million managed by the university in Fund N; the remaining $1.7 billion endowment held in Fund A is managed by the University of Nebraska Foundation.
Carter said the university system does not have any direct investments in fossil fuel companies and has reduced its exposure to energy companies from 6.5% a year ago to 2% today.
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In all, about 1% of NU’s Fund N endowment is invested in the Carbon Underground 200, the top 200 publicly traded oil, gas and coal companies, Carter said, and the biggest focus of student leaders in Divest NU.
Even with the divestment, Carter said NU wanted to take further action to show its commitment to the issue, adding the policy change approved Friday would not box the university in or create restrictions on how the university invests its endowed funds.
“What it does do is create flexibility for you to consider factors other than making money,†Carter said. “I think we can all agree that there is value in flexibility, and that responsible investing is a best practice that aligns with the priorities of our students, faculty and staff.â€
By adopting the policy, Carter said NU would work toward its 2025 goal of only investing in companies that have a sustainability plan in place.
“We would engage with (environmental, social and governance) experts who can help us make certain that we invest only in companies that are doing real, meaningful work in clean energy,†he said. “In other words, no greenwashing allowed.â€
About a dozen students addressed regents Friday, voicing support for the policy change and thanking both the board and administrators in working with them on this issue.
But several students also told regents they expect more to be done to align the university’s financial decisions with its commitment to sustainability, which they said will become increasingly important to future students.
Brittni McGuire, a senior at the University of Nebraska-Lincoln studying fisheries and wildlife, said the university should use its endowment as a public advocacy tool, voicing concern that the policy change approved by regents let fossil fuel companies off the hook too easily.
“A fossil fuel company with a sustainability plan is the definition of greenwashing, and I really don’t think that’s going to change no matter how many (environmental, social and governance) experts we hire to analyze that situation,†McGuire said.
And Madison Whitney, a junior environmental studies and global studies major at UNL, said fossil fuel divestment will play a growing role in the recruitment and retention of future students.
“Divestment is a way to keep passionate and dedicated students at your university,†she said. “Show that you care about your students, show that you’re listening to your students.â€
Carter thanked the students for sharing their views and indicated the university would continue examining the issue.
“My message to them is: 'We are listening,'†he said.
In other business:
* Sen. Mike Hilgers, the speaker of the Legislature, told the Board of Regents that despite challenging headwinds created by political discord, he was hopeful about the future of the state and the university.
"You have a Nebraska Legislature that is ready, willing and able to drive through those headwinds and work toward transformational change," said Hilgers of Lincoln.
Lawmakers hope to lean on the talent, energy and intellectual capital available at NU "to get something major and transformational done that could impact the next several generations," Hilgers added.
* Regents approved a change to university bylaws clarifying disciplinary procedures to be followed if a faculty member was placed on administrative leave. Faculty say the bylaw change will be key to removing UNL from the Censure List maintained by the American Association of University Professors.
* The board set a guaranteed maximum price of $109 million for the first phase of improvements at Memorial Stadium, including a new football training complex. Hausmann Construction was selected as the construction manager at risk for the $155 million project, which is to be paid for through a combination of privately raised funds, trust funds and an internal-lending program started by the university.
* Kiewit Hall, the forthcoming expansion to UNL’s College of Engineering, got a $12 million boost to its budget. Regents set the new budget on the privately funded, 181,000-square-foot facility at $97 million.