You are on page 1of 18

!"# %&'# ()* +,-#'./#0.

ÞresenLed 8y: 8C lossll lree
lebruary 6, 2014

!"# %&'# ()* +,-#'./#0. 1

232%4!562 74889:;
"#$%&'( )*&+,( $- & .(&#$'/ '*&' $- &#'(.$+, '*( 01.#2 0( 3+10 &+2
2(4$+$+, '*( 01.#2 0( 0$## -11+ $+*(.$'5 6- '*( 7.(%$(. 8(-9$' :+$;(.-$'/<
=1-'1+ "1##(,( *&- '*( 9+$>9( $+'(##()'9&#< -7$.$'9&#< &+2 ()1+1%$)
.(-19.)(- +()(--&./ '1 '&3( & -'.1+, -'&+)( &,&$+-' '*$- 2((7(+$+,
)#$%&'( ).$-$- &+2 ?()1%( & #(&2(. $+ '*( @1--$# @9(# A$;(-'%(+'
"&%7&$,+5 B*.19,* 2$;(-'%(+'< '*( 9+$;(.-$'/ 0$## 97*1#2 $'-
)1%%$'%(+' '1 -1)$&# C9-'$)( &+2 *(#7 .(29)( '*( $%7&)'- 14 .$-$+,
)&.?1+ (%$--$1+- 1+ *9%&+ &+2 (+;$.1+%(+'&# *(&#'*5 622$'$1+&##/<
2$;(-'%(+' 4.1% $..(-71+-$?#( &+2 $%%1.&# 41--$# 49(# )1%7&+$(- '*&'
;&#9( 7.14$' 1;(. #$%$'$+, )#$%&'( 2(-'.9)'$1+< 7&$.(2 0$'* $+;(-'%(+' $+
-9-'&$+&?#( (+(.,/ )1%7&+$(-< $- '*( -&4(-'< #1+,D'(.% 4$+&+)$&# 7#&+5
< !"# %&'# ()* +,-#'./#0.

!9=>2 ?@ %?A!2A!7

ulvesLmenL ls Lhe 8esL SoluLlon ..................................................................... 6
uangers of Lhe ºCarbon 8ubble" .................................................................... 7
ulvesLmenL ls a ÞrudenL llnanclal ueclslon ................................................... 9




!"# %&'# ()* +,-#'./#0. E

%>589!2 %P9AQ2 57 9 :29> !P:29!

CllmaLe change ls Lhe mosL lmporLanL lssue of our Llme and one LhaL
demands lmmedlaLe aLLenLlon. 1here ls a nearly unanlmous consensus
(>97°) ln Lhe cllmaLe sclence communlLy LhaL cllmaLe change ls happenlng
and LhaL lL ls caused by anLhropogenlc carbon emlsslons from Lhe burnlng
of fossll fuels.
1he lnLergovernmenLal Þanel on CllmaLe Change released
Lhelr laLesL revlew of Lhe evldence ln SepLember 2013 flndlng LhaL,
ºwarmlng of Lhe cllmaLe sysLem ls unequlvocal."
noL [usL wlLhln Lhe
sclenLlflc communlLy, buL leaders around Lhe world are recognlzlng Lhe
problem and ln[usLlce of cllmaLe change.

ÞresldenL Cbama, ln hls SLaLe of Lhe unlon address, announced Lo
Congress and Lhe Amerlcan people LhaL cllmaLe change ls real and
poses a serlous LhreaL Lo Lhe fuLure wellbelng of hls chlldren's

Þope 8enedlcL xvl proclalmed, º1he Church has a responslblllLy
Lowards creaLlon, and she conslders lL her duLy Lo exerclse LhaL
responslblllLy ln publlc llfe, ln order Lo proLecL Lhe earLh, waLer and
alr as glfLs of Cod Lhe CreaLor meanL for everyone, and above all Lo
save manklnd from Lhe danger of self-desLrucLlon."

World 8ank ÞresldenL, !lm ?ong klm, has spoken on Lhe lssue of
cllmaLe change and supporLed dlvesLmenL from lndusLrles emlLLlng
large quanLlLles of cllmaLe warmlng gases. Pe addressed Lhe World
Lconomlc lorum saylng, ºLhrough pollcy reforms, we can dlvesL and
Lax LhaL whlch we don'L wanL, Lhe carbon LhaL LhreaLens
developmenL galns over Lhe lasL 20 years."

1he baslc facLs are Lhls: Lhe pre-lndusLrlal CC
levels, ln whlch human llfe
developed, averaged abouL 277 parLs per mllllon of CC
ln order Lo
preserve Lhe safeLy of llfe on Lhls planeL, cllmaLe sclenLlsLs have sLaLed LhaL
aLmospherlc CC
levels should remaln under 330ppm.
?0 8&G R
S <T1E
U# *#&V"#N MTTKK/ aL Lhe Mauna Loa sLaLlon ln Pl.
1he lasL Llme
aLmospherlc CC
was aL Lhls level was llkely Lhe Þllocene epoch some Lwo
mllllon years ago when herds of glanL MasLodons roamed norLh Amerlca.

1he raLe of lncrease has rlsen from 0.7ppm per year ln Lhe 1930s when
measuremenLs began Lo 2.1ppm per year over Lhe lasL decade.
M !"# %&'# ()* +,-#'./#0.

consequences of humanlLy's unconLrolled experlmenL are becomlng
lncreaslngly clear. SclenLlsLs, noL known Lo speak ln such language, have
sLaLed, "lL ls cerLaln LhaL global mean surface LemperaLure (CMS1) has
lncreased slnce Lhe laLe 19Lh cenLury".
1he warmlng Lrend from 1880-
2012 ls besL esLlmaLed aL .83¨C.
1he consequences of Lhe LemperaLure
rlse have been devasLaLlng and lnclude:


WaLer acldlflcaLlon


Wldespread food and waLer

8lslng sea levels

unprecedenLed floodlng

8ecord-shaLLerlng heaL waves

lnLense cyclones and hurrlcanes.

As Lhe consequences of a less Lhan 1¨C rlse have been devasLaLlng,
exceedlng 2¨C wlll be caLasLrophlc. ln order Lo prevenL such consequences,
141 counLrles have slgned onLo Lhe un's Copenhagen Accord and agreed Lo
ºhold Lhe lncrease ln global LemperaLure below 2¨C, and Lake acLlon Lo
meeL Lhls ob[ecLlve conslsLenL wlLh scleoce and on Lhe basls of epolty."

unforLunaLely, acLlons Lo daLe are noL ln llne wlLh Lhls goal. lossll fuel and
cemenL manufacLurlng emlsslons lncreased aL Lhe raLe of one percenL per
year ln Lhe 1990s. lrom 2002-2011,
however, Lhe average growLh raLe
was 3.2° per year.

8ecenLly, cllmaLe sclenLlsLs and oLhers have begun esLlmaLlng ºcarbon
Lo undersLand Lhe near fuLure lmpllcaLlons of our currenL raLe of
carbon emlsslons on Lhe goal Lo prevenL a 2¨C LemperaLure rlse. ln 2009,
Lwo papers ln Notote uLlllzed Lhe cumulaLlve emlsslons framework and
analyzed Lhe quanLlLy of CC
humanlLy mlghL release and Lhe assoclaLed
chances LhaL cllmaLe mlghL sLay under 2¨C of warmlng relaLlve Lo pre-

this includes the height of the Global Recession, which dampened emissions growth.

While the budget framework is useful in communicating the urgency of beginning emissions reductions, it is
worth pointing out a danger: Individuals, families, and institutions alike are used to thinking it acceptable to
spend the entire budget. However, since we are dealing with probability, the farther we stay “under budget”,
the more likely we are to avoid catastrophic consequences.

!"# %&'# ()* +,-#'./#0. O

lndusLrlal levels (Allen, lrame, PunLlngford, eL al. 2009, hereafLer A2009,
Melnshausen eL al. 2009, here afLer M2009).

M2009 found LhaL llmlLlng cumulaLlve CC
emlsslons from Lhe perlod 2000
Lhrough 2049 Lo 1,000 CL
(272.92 CLC
) would provlde a sevenLy-flve
percenL chance of sLaylng under 2¨C, and llmlLlng Lo 1440CL CC
(393 CLC)
would resulL ln a flfLy percenL chance (Lhese flgures lnclude Lhe neL
warmlng effecL of oLher cllmaLe forclngs).
noLe, however, LhaL M2009
only goes Lhrough 2049. A2009 brlngs Lo llghL LhaL CC
released Loday wlll
conLlnue Lo have cllmaLlc effecLs well beyond 2049: º[C]llmaLe effecLs of
release[d] Lo Lhe aLmosphere wlll perslsL for Lens, lf noL hundreds, of
Lhousands of years lnLo Lhe fuLure."
A2009 flnds LhaL cumulaLlve
emlsslons, beglnnlng from lndusLrlallzaLlon, of 3,664 CL CC
(1,000 CLC) wlll
lead Lo 2¨C (90° Cl 1.3-3.9¨C). 1hus, Lhe resulLs of Lhese Lwo carbon budgeL
papers are effecLlvely Lhe same, as A2009 sLaLes lLs besL esLlmaLe for 2¨C
warmlng Lo be 2000-2049 emlsslons of .4-.3 1LC (1rllllon Lonnes of Carbon)
whlle M2009 flnds .393 1LC.

1he lÞCC's llfLh AssessmenL 8eporL also examlned Lhe carbon budgeL
framework. 1hey found LhaL llmlLlng cumulaLlve carbon emlsslons Lo 790 CL
resulLs ln a greaLer Lhan 66° chance of llmlLlng warmlng Lo 2¨C above
prelndusLrlal levels. 1hey also noLe Lhls ls a conservaLlve esLlmaLe (llkely
hlgher warmlng). PumanlLy had released 313 CLC Lhrough 2011, leavlng
273 CLC ln Lhe budgeL. Powever, Lhe mosL up Lo daLe emlsslons flgure ls
373 CLC Lhrough !anuary 2014.
1hrough Lhe presenL Lhen, "W/&0,.G "&'
*)WC"BG <1X Q.% *#/&,0,0CD

Gt is the abbreviation for Gigaton, which is equivalent to a billion tons.

GtC is the abbreviation for Gigatons of Carbon. 1 GtC = 3.667 Gt of CO2
I !"# %&'# ()* +,-#'./#0.

+5627!82A! 57 !P2 =27! 7?>4!5?A

Carbon budgeLs make lL clear LhaL humanlLy can emlL 363 CL of CC
beLween 2010 and 2030 Lo have a flghLlng chance (~73°) of sLaylng below
lrom 2010 Lo 2013, we emlLLed 140 CL of CC
almosL exacLly one
quarLer of Lhe carbon budgeL. lf buslness as usual conLlnues, we wlll blow
Lhe budgeL by 2024. Powever, fossll fuel companles conLlnue Lo lnvesL
preclous resources lnLo lncreaslng Lhelr fossll fuel reserves. ln 2013, Lhey
spenL $674 bllllon Lo flnd and develop new fossll fuel sources LhaL cannoL
be used wlLhln our carbon budgeL.
noL only are Lhey apaLheLlc Lo Lhe
fuLure susLalnablllLy of Lhe planeL, Lhey are lndlfferenL Lo Lhe deaLhs
already belng caused by cllmaLe change. 8esearch sponsored by 20
governmenLs around Lhe world suggesLs LhaL cllmaLe change ls already
causlng 400,000 deaLhs per year, and fossll fuel usage ls expecLed Lo cause
100 mllllon deaLhs over Lhe nexL 18 years.

lf lL ls wrong Lo explolL a resource LhaL ls causlng Lhe deaLhs of Lhousands of
lnnocenL people and faLlng fuLure generaLlons Lo a severely damaged
planeL, Lhen lL ls also wrong Lo proflL from such acLlvlLles. 8y lnvesLlng ln
fossll fuel companles, we sancLlon and leglLlmaLe Lhelr desLrucLlve
behavlor. 8y dlvesLlng, we ºcan [oln LogeLher as a world," says Archblshop
uesmond 1uLu, ºand puL pressure where lL counLs."

1he goal of Lhe dlvesLmenL movemenL ls Lo make a publlc sLaLemenL LhaL
fossll fuel companles need Lo embrace a susLalnable carbon budgeL or be
regulaLed by Lhe governmenL so LhaL Lhey cannoL proflL so heavlly on Lhe
desLrucLlon of our world. unlverslLy dlvesLmenL ls boLh effecLlve and
publlcally lnfluenLlal because of Lhe slze of Lhelr endowmenLs and Lhe
passlon for [usLlce of Lhe sLudenL body. 1hls movemenL was successful ln
Lhe pasL aL urglng naLlons Lo dlvesL from SouLh Afrlca Lo eradlcaLe
aparLheld, and we are confldenL LhaL Loday's fossll fuel dlvesLmenL
movemenL can share Lhe same success.

2013 figures are estimates from Boden et al. 2013.

!"# %&'# ()* +,-#'./#0. X

+9AQ2:7 ?@ !P2 Y%9:=?A =4==>2Z

1he Carbon 8ubble ls Lhe mlsrepresenLaLlon of Lhe acLual worLh of fossll
fuel reserves ln Lhe currenL value of fossll fuel asseLs. WlLh our carbon
budgeL of 363 CL of CC
, fossll fuel companles are LhreaLened by Lhe fuLure
lnablllLy Lo use Lhelr reserves. 1he Carbon 1racker lnlLlaLlve reporLs LhaL
fossll fuel reserves currenLly hold 2,793 CL of CC
, whlch ls abouL 3x more
Lhan whaL our carbon budgeL wlll allow.
1hus, ln order Lo prevenL a global
LemperaLure rlse of 2¨C, [T\ )( #],'.,0C ()'',B (W#B *#'#*-#' /W'. *#/&,0#N
W0^W*0#N &0N ,0 ."# C*)W0N.
1hls creaLes Lhe rlsk of 80° of fossll fuel
reserves becomlng '.*&0N#N &''#.'. lormer !Þ Morgan Managlng ulrecLor,
!ohn lullerLon, has broughL Lo llghL Lhe lmpllcaLlons of Lhls slLuaLlon:

1bete´s woy mote cotboo lo tbe qtoooJ tboo tbete ls cotboo boJqet
left. lf we cboose oot to ttosb tbe plooet, we bove to qet fossll-foel
compooles to leove tbe oll ooJ cool lo tbe qtoooJ.we oeeJ to keep
80 petceot of tesetves lo tbe qtoooJ. lf yoo oJJ op tbot 80 petceot ot
cotteot motket voloe lt´s 520 ttlllloo.

unforLunaLely, fossll fuel companles are noL llkely golng Lo glve up Lhese
large shorL-Lerm proflLs. 1hey can plan Lo burn all 2,793 C1 of CC
, buL Lhey
wlll have Lo flghL agalnsL Lhe 141 governmenLs LhaL wlll regulaLe carbon
emlsslons ln order Lo prevenL a 2¨C LemperaLure rlse.

1hey wlll also be
flghLlng susLalnable energy companles, whlch are becomlng slgnlflcanL
markeL compeLlLors:

1he uS Lnergy lnformaLlon AdmlnlsLraLlon reporLs LhaL renewable
energy wlll make up nearly a Lhlrd of all new elecLrlclLy generaLlon
capaclLy ln Lhe uS ln Lhe nexL 3 years.

1he Wlnd Þower lndusLry has grown aL a raLe of 23° annually durlng
Lhe pasL 3 years, Lhe solar lndusLry by a 30° annual raLe.

1he lnLernaLlonal Lnergy Agency says renewable energy cosLs have
been decreaslng and a porLfollo of renewable energy Lechnologles ls
becomlng cosL-compeLlLlve ln an lncreaslngly broad range of

2 of lorbes 1op 3 Lnergy SLores of 2012: focused on energy efflclency
and renewables.

[ !"# %&'# ()* +,-#'./#0.

LasLly, Lhey wlll be flghLlng agalnsL Lhe global publlc, whlch ls rapldly
becomlng more aware of Lhe lmmlnenL LhreaL of cllmaLe change. 1hese
facLors - governmenL regulaLlon, susLalnable energy compeLlLlon, and rlslng
publlc awareness - are of Lhe many LhaL wlll be worklng agalnsL Lhe
proflLablllLy of fossll fuel companles. 1hus, lf fossll fuel companles do noL
accepL 80° of Lhelr fossll fuel reserves as sLranded asseLs and Lake
lmmedlaLe acLlon Lo plan for long-Lerm susLalnablllLy accordlng Lo Lhe
carbon budgeL, Lhe ground wlll break from underneaLh Lhelr feeL and '.)V_
-&BW#' U,BB N,/,0,'". 1hey wlll brlng Lhelr company, shareholders, and
global economy lnLo flnanclal ruln.
So long as fossll fuel companles do noL
plan accordlng Lo Lhe carbon budgeL, Lhe Carbon 8ubble presenLs a serlous
flnanclal LhreaL Lo all lnvesLors.

!"# %&'# ()* +,-#'./#0. R

+5627!82A! 57 9 J:4+2A! @5A9A%59> +2%575?A

ln llghL of Lhe Carbon 8ubble and Lhe refusal of fossll fuel companles Lo
Lransform Lhelr pracLlces, fossll fuel sLock values are becomlng more rlsky
and unsLable as Llme moves on. 1hls ls noL a wlse lnvesLmenL for 8osLon
College, as Lhe mlsslon of lLs endowmenL ls, ºLo supporL Lhe lnsLlLuLlonal
mlsslon and operaLlons of Lhe unlverslLy over Lhe long Lerm such LhaL boLh
currenL and fuLure generaLlons of sLudenLs recelve beneflLs from Lhe
1hus, Lhe mosL prudenL flnanclal declslon for Lhls unlverslLy
ls Lo dlvesL from fossll fuel companles. Also, ln llghL of evldence found by
counLless flrms and research organlzaLlons, lnvesLmenL lnLo susLalnable
energy companles would be boLh sLable and proflLable.

1he growlng Lrend of fossll fuel dlvesLmenL has prompLed professlonal
sLudles on Lhe proflLablllLy of lnvesLlng ln ºgreen" porLfollos. Morgan
SLanley CaplLal lnLernaLlonal (MSCl) [usL recenLly publlshed one such sLudy
ln !anuary 2014. MSCl ls a leader ln lnvesLmenL declslon supporL wlLh
around 8,000 cllenLs worldwlde. 1he number one Lrend Lo waLch ln MSCl's
"2014 1rends Lo WaLch" ls fossll fuel dlvesLmenL. 1he auLhors noLe LhaL Lhe
"dlvesLmenL movemenL has ralsed some uncomforLable quesLlons."
Speclflcally, LhaL "fossll fuel producers have carbon reserves up Lo flve
Llmes hlgher Lhan Lhls llmlL [430 ppm] would allow."

MSCl conducLed research on four opLlons for addresslng carbon exposure:
dlvesLmenL, low-carbon fund (excludlng Lhe largesL carbon reserve
holders), carbon LllL (hlgher lnvesLmenL ln companles wlLh sLronger
performance on carbon sLraLegy), and LhemaLlc (uslng a fund llke MSCl's
Clobal LnvlronmenLal lndex). Cver Lhe LesL perlod (!anuary 1, 2007 -
uecember 31, 2013), Lhe B)U V&*^)0 &0N N,-#'./#0. )K.,)0' K#*()*/#N
."# ^#'., whlle Lhe carbon LllL performed Lhe worsL. Powever, all four
opLlons had average annuallzed reLurns beLween 4.22° and 4.4°. 1he
auLhors noLe LhaL for us, "Lhls generaLlon of sLudenLs, Lhe moral lmperaLlve
Loday ls Lo sLop all fossll fuel exLracLlon." 1hey conclude by saylng: "lf
enough lnvesLors become concerned abouL a poLenLlal carbon bubble,
Lhere could be a self-fulfllllng prophecy Lo how Lhe flnanclal communlLy
values currenL and fuLure carbon reserves."

1T !"# %&'# ()* +,-#'./#0.

AnoLher sLudy was publlshed ln lebruary 2011 by Lhe SusLalnable
LndowmenLs lnsLlLuLe, called ºCreenlng Lhe 8oLLom Llne: Lhe 1rend Loward
Creen 8evolvlng lunds on Campus." 1he paper evaluaLed 32 lnsLlLuLlons
LhaL had $66 mllllon lnvesLed ln Creen 8evolvlng lunds (C8ls), whlch are
funds LhaL ºflnance measures Lo reduce resource use (e.g., energy, waLer,
paper) or Lo mlLlgaLe carbon emlsslons."
WesLern Mlchlgan unlverslLy and
Parvard unlverslLy held Lhe Lwo longesL C8ls, Lhe former belng formed ln
1980 and Lhe laLLer ln 2001. WesLern Mlchlgan unlverslLy reporLed fundlng
101 pro[ecLs wlLh a porLfollo 8Cl of 47° (average slmple payback of 2.1
years). 1hey reporL, ºSlnce 1996, our LoLal pro[ecL cosLs are approxlmaLely
$3.83 mllllon and our annual cosL savlngs are approxlmaLely $2.73 mllllon,
wlLh a LoLal cosL avoldance Lo daLe of approxlmaLely $16.71 mllllon."

Parvard unlverslLy experlenced comparably poslLlve resulLs wlLh lLs Creen
Loan lund (CLl) of 183 pro[ecLs LhaL produced an average 8Cl of 30° as of
CcLober 2010. ºlurLhermore," Lhe reporL lncludes, ºLhe CLl reporLs
reduced annual campus emlsslons of CC
equlvalenL by 14,181."

llndlngs from addlLlonal organlzaLlons on fossll fuel dlvesLed porLfollos

ln 1999, Lhe flrm ÞorLfollo 21 creaLed Lhe Clobal LqulLy lund
(ÞC81x), whlch ºlncorporaLes envlronmenLal, soclal, and governance
facLors lnLo lLs lnvesLmenLs." ln 2009, Lhey found LhaL Lhe ÞC81x
ouLperformed lLs benchmark by 93 basls polnLs annuallzed over Lhe
pasL decade, whlle malnLalnlng a below average rlsk.

A reporL by Lhe Aperlo Croup, a flnanclal consulLlng agency,
calculaLed Lhe LheoreLlcal reLurn penalLy of Lhe 8ussell 3000 when
Lhe ºlllLhy llfLeen" (Lop 13 mosL harmful fossll fuel companles
[udged by As ?ou Sow and Lhe 8esponslble LndowmenL CoallLlon)
were removed from Lhe porLfollo. Assumlng a Lracklng error of only
0.14°, Lhe LheoreLlcal reLurn penalLy was found Lo be merely
0.0002°. 1he reporL concludes LhaL, ºexcludlng Lhe lllLhy llfLeen has
no real lmpacL on rlsk."

ln uecember of 2012, Lhe ClLy of SeaLLle declded Lo dlvesL lLs $1.9
bllllon of employee penslons from fossll fuels. 1hus far, Lhere has
been no measurable change ln porLfollo value. 1here ls a greaLer rlsk,
argued SeaLLle Mayor Mlke McClnn durlng hls speech, ºfor economlc

!"# %&'# ()* +,-#'./#0. 11

and flnanclal losses from Lhe lmpacL of unchecked cllmaLe change
[Lhan from dlvesLmenL]".

1< !"# %&'# ()* +,-#'./#0.

J:?Q:277 ?@ !P2 A9!5?A9> +5627!82A! %98J95QA

8osLon College can and should [oln peer lnsLlLuLlons ln llvlng up Lo lLs values
of soclal [usLlce by dlvesLlng from Lhe fossll fuel lndusLry. nlne colleges
along wlLh LwenLy-Lwo clLles and counLless rellglous lnsLlLuLlons have
commlLLed Lo dlvesLlng Lhelr endowmenLs from Lhe Lop 200 coal, oll and
gas produclng companles. ln addlLlon, Lhere are dlvesLmenL campalgns aL
328 colleges and unlverslLles ln Lhe unlLed SLaLes.

All of 8osLon College's Lop 10 cross-appllcaLlon compeLlLors currenLly have
dlvesLmenL campalgns LhaL are growlng ln sLrengLh and slze. We musL
recognlze LhaL whlle cllmaLe change poses a LhreaL and challenge, lL also
offers an unmaLched opporLunlLy for 8osLon College and lLs sLudenLs Lo
become leaders ln Lhe economlc and soclal change surroundlng Lhls lssue.
Pampshlre College and unlLy College have already successfully dlvesLed
Lhelr holdlngs and Lhelr porLfollos have conLlnued Lo perform as well as
before, ensurlng LhaL Lhelr endowmenLs are able Lo provlde for all of Lhe
colleges needs. ÞresldenL SLephen Mulkey of unlLy College sLaLes,
wltb tespect to flscol tespooslblllty fot tbe colleqe...oot estlmotes
sbow tbot Jlvestloq ls cooslsteot wltb molotololoq o tetoto tbot wlll
cootlooe to beot tbe motket ovetoqes ooJet cotteot ptlces. 1bos,
we feel tbls ls o wlo-wlo opptoocb fot tbe colleqe ooJ fot tbe

1he dlvesLmenL campalgn has expanded far beyond Lhe college campus.
1hls monLh alone, sevenLeen foundaLlons conLrolllng nearly $1.8 bllllon ln
lnvesLmenLs have unlLed and commlLLed Lo dlvesL from fossll fuels. 1he
!ohn Merck lund was one of Lhese foundaLlons and has been slowly
dlvesLlng slnce lasL year. ln response Lo concern abouL porLfollo
performance, chalrwoman Cllvla larr dlvulged LhaL Lhe fund, whlch ls now
97° dlvesLed from fossll fuel, was up roughly 20 percenL lasL year.
ln addlLlon Lo Lhese unlverslLles and foundaLlons, !ohn lullerLon (former !Þ
Morgan Managlng ulrecLor) has openly volced hls supporL for Lhe
dlvesLmenL campalgn. lurLhermore, former Mayor of new ?ork, Mlchael
8loomberg has Leamed up wlLh bllllonalre and former hedge fund manager

!"# %&'# ()* +,-#'./#0. 1E

1om SLeyer, along wlLh former uS 1reasury SecreLary Pank Þaulson Lo form
an organlzaLlon called 8lsky 8uslness. 1hls organlzaLlon works Lo frame
energy and cllmaLe problems as a flnanclal lssue LhaL wlll have [usL as greaL
an effecL on Lhe economy as on lL wlll on Lhe sea level. 1hey argue for
soclally responslble lnvesLlng, lnslsLlng LhaL dlvesLmenL ls Lhe only way Lo
ºsend Lhe message LhaL we have Lo make a change."

1he dlvesLmenL campalgn ls supporLed by college sLudenLs and
professlonals, llberal conservaLlonlsLs and conservaLlve buslness-people
allke. uesplLe our background and llfe experlence, all who are lnvolved ln
Lhls movemenL have recognlzed Lhe urgenL LhreaL of cllmaLe change and
Lhe necesslLy Lo dlvesL ln order Lo secure Lhe fuLure world economy and
well-belng of llfe on LarLh.

1M !"# %&'# ()* +,-#'./#0.

FP9!L7 !? =2 +?A2

ln Lhe lnLeresL of Lhe sLudenL body of 8osLon College, Lhe securlLy of Lhe
school's endowmenL, Lhe global cllmaLe, Lhe fuLure world economy, and
Lhe communlLy of llfe on Lhls planeL, U#S ,0VBWN,0C RTT /#/^#*' )( ."# =%
V)//W0,.G U") "&-# ',C0#N ."# ()'',B (*## K#.,.,)0S W*C# =)'.)0 %)BB#C#
.) "&B. 0#U ,0-#'./#0.' ,0 ()'',B (W#B V)/K&0,#' &0N V)/KB#.#BG N,-#'.
(*)/ .")'# (,*/'S ,0VBWN,0C &0G V)//,0CB#N (W0N' ."&. ,0VBWN# ()'',B (W#B
KW^B,V #`W,.,#' &0N V)*K)*&.# ^)0N'S U,.",0 (,-# G#&*'.

8osLon College says LhaL lLs endowmenL ls Lo ºbe handled ln accordance
wlLh Lhe [eLhlcal, soclal and moral] prlnclples."
1hese are prlnclples LhaL
Lhls unlverslLy has always llved by and used Lo measure lLs success -
prlnclples LhaL we, Lhe sLudenL body, value as well. We requesL dlvesLmenL
noL as your opponenLs, buL as members of Lhe 8C communlLy who share
your same lnLeresLs, values, and goals.

We boLh wanL Lhe same Lhlngs: we wanL an excellenL lnsLlLuLlon, we wanL
our endowmenL Lo proflL, and we wanL Lo llve ln a cllmaLe LhaL looks
someLhlng llke whaL you grew up wlLh. 1haL ls why we have come Lo you
Loday Lo call your aLLenLlon upon a bad lnvesLmenL - an lnvesLmenL ln Lhe
radlcally un[usL and uneLhlcal pracLlces of fossll fuel companles. We are
cerLaln of our evldence and are ready Lo provlde you wlLh any addlLlonal
resources you may need. 1he cholce for dlvesLmenL ls ln your hands, Lhe 8C
communlLy hopes for your approval.

1he SLudenLs of 8osLon College

!"# %&'# ()* +,-#'./#0. 1O


Cook, !ohn eL al. 2013. ºCuanLlfylng Lhe Consensus on AnLhropogenlc Clobal Warmlng
ln Lhe SclenLlflc LlLeraLure." íovltoomeotol keseotcb lettets 8(2):024024.
<hLLp:// 31
!an. 2014.
lull reporL can be found onllne. SLocker, 1homas l. eL al., eds. 2013. cllmote cbooqe
201J. 1be lbyslcol 5cleoce 8osls. new ?ork: Cambrldge unlverslLy Þress. 8eLrleved
lebruary 4, 2014
Þope 8enedlcL xvl, Messoqe of bls nolloess lope 8eoeJlct \vl lot tbe celebtotloo of
tbe wotlJ uoy of leoce. vaLlcan.
xvl_mes_20091208_xllll-world-day-peace_en.hLml. 4 leb. 2014.
Ld klng, ºWorld 8ank chlef backs fossll fuel dlvesLmenL drlve," 8espondlng Lo CllmaLe
Change, hLLp://
dlvesLmenL-drlve, 1 leb. 2014.
lull reporL can be found onllne. 8oden eL al. LarLh SysLem Sclence uaLa. 693.
hLLp://www.earLh-sysL-scl-daLa-dlscuss.neL/6/689/2013/essdd-6-689-2013.pdf. 2 leb.
lull reporL can be found onllne. Pansen, !ames eL al. 2008. º1argeL ALmospherlc CC2:
Where Should PumanlLy Alm?" 1be Opeo Atmospbetlc 5cleoce Iootool 2(1):217-31. See
also Pansen, !ames eL al. 2013. ºAssesslng 'uangerous CllmaLe Change': 8equlred
8educLlon of Carbon Lmlsslons Lo ÞroLecL ?oung Þeople, luLure CeneraLlons and
naLure" edlLed by !uan A. Anel. llo5 ONí 8(12):e81648. 2 leb. 2014.
8oberL Monroe. 2013. ºCarbon uloxlde aL Mauna Loa CbservaLory 8eaches new
MllesLone: 1ops 400 Þpm." 5ctlpps lostltotloo of Oceoooqtopby. 8eLrleved lebruary 4,
2014 (hLLps://
lull reporL can be found onllne. 8arLoll, CreLLa, 8arbel Pönlsch, and 8lchard L. Zeebe.
2011. ºALmospherlc CC2 uecllne durlng Lhe Þllocene lnLenslflcaLlon of norLhern
Pemlsphere ClaclaLlons." loleoceoooqtopby 26(4):ÞA4213. 31 !an. 2014.
SLocker, 37.
unlCCC. 2009. ºCopenhagen Accord." 8eLrleved uecember 18, 2013
(hLLp://unfccc.lnL/resource/docs/2009/cop13/eng/l07.pdf). 2 leb. 2014.
Melnshausen, MalLe, nlcolal Melnshausen, Wllllam Pare, Sarah C. 8. 8aper, kaL[a
lrleler, 8eLo knuLLl, uavld !. lrame, and Myles 8. Allen. ºCreenhouse-Cas Lmlsslon
1argeLs for LlmlLlng Clobal Warmlng Lo 2 ¨C." Notote 438, no. 7242 (Aprll 30, 2009):
1138-1162. dol:10.1038/naLure08017. 1 leb. 2014.
1I !"# %&'# ()* +,-#'./#0.

Allen, Myles, uavld lrame, kaL[a lrleler, Wllllam Pare, Chrls PunLlngford, Chrls !ones,
8eLo knuLLl, eL al. º1he LxlL SLraLegy." Notote kepotts cllmote cbooqe no. 0903 (May
2009): 36-38. dol:10.1038/cllmaLe.2009.38. 1 leb. 2014.
See hLLp://, whlch uses provldes currenL esLlmaLes from uslng daLa
from Lhe Carbon uloxlde lnformaLlon Analysls CenLer (CulAC) aL Cakrldge naLlonal
LaboraLory and oLher sources.
Melnshausen eL al. 2009.
uamlan CarrlngLon, ºCarbon bubble wlll plunge Lhe world lnLo anoLher flnanclal crlsls
reporL," 1he Cuardlan.
crash-crlsls, 1 leb. 2014.
1hls arLlcle hlghllghLs some of Lhe flndlngs of a 331-page reporL by Lhe uA8A Croup.
llona Parvey, ºCllmaLe Change ls already damaglng global economy, reporL flnds," 1he
Cuardlan, hLLp://
damaglng-global-economy, 29 !an. 2014.
LnvlronmenLal and Lnergy SLudy lnsLlLuLe. coll fot uolvetsltles to ulvest lo lossll loel
compooles. hLLp://
2012. 2 leb. 2014.
vlew Lhe reporL onllne. uobotooble cotboo - Ate tbe wotlJ´s lloooclol Motkets
cottyloq o cotboo 8obble. Carbon 1racker lnlLlaLlve. hLLp://
conLenL/uploads/downloads/2011/07/unburnable-Carbon-lull-rev2.pdf. 2 leb. 2014.
Carbon 1racker and Lhe CranLham 8esearch lnsLlLuLe, uobotooble cotboo 201J.
wosteJ copltol ooJ sttooJeJ ossets, hLLp://, 1
leb. 2014
8rad !ohnson, º1he $20 1rllllon Carbon 8ubble: lnLervlew WlLh !ohn lullerLon, ÞarL
Cne," CllmaLe Þrogress, hLLp://
Lrllllon-carbon-bubble-lnLervlew-wlLh-[ohn-fullerLon-parL-one, 29 !an. 2014.
lleLcher Parper, 8ev. ulvest ooJ kelovest. Now. 1he 8ellglous lmperaLlve for lossll
luel ulvesLmenL and 8elnvesLmenL ln a Clean Lnergy luLure. 4.
greenfalLhs-overvlew. 31 !an. 2014.
CarrlngLon, 1.
8osLon College, 8ostoo colleqe íoJowmeot,
hLLp://, 1 leb. 2014.
LSC 8esearch. Optloos fot keJocloq lossll loel íxposote. !anuary 2014. 1-3.
for_8educlng_lossll_luel_Lxposure.pdf. 1 leb. 2014.
lull reporL can be found onllne. SusLalnable LndowmenLs, Cteeoloq tbe 8ottom lloe.
1be 1teoJ towotJ Cteeo kevolvloq looJs oo compos. 7-8. hLLp://
Llne.pdf, 1 leb. 2014.
lbld., 28.

!"# %&'# ()* +,-#'./#0. 1X

!oshua Pumphrys. lostltotloool lotbwoys to lossll ltee lovestloq: LndowmenL
ManagemenL ln a Warmlng World. May 3013. 1-6.
ÞaLrlck Ceddes, uo tbe lovestmeot Motb. 8ollJloq o cotboo-ltee lottfollo, Aperlo
lo.pdf. 29 !an. 2014.
Mlke McClnn, 5eottle Moyot OtJets clty to ulvest ftom lossll loels, 330,
hLLp:// seaLLle-mayor-orders-clLy-dlvesL-fossll-fuels, 1 leb. 2014.
lossll lree, commltmeots, lossll lree Campalgn,
hLLp://, 1 leb. 2014.
SLephen Mulkey, uolty colleqe 8ootJ of 1tostees votes to Jlvest ftom fossll foels,
unlLe College SusLalnablllLy MonlLor,
hLLp:// /03/unlLy-college-board-of-
LrusLees-voLes-Lo-dlvesL-from-fossll-fuels, 1 leb. 2014.
ulane Cardwell, loooJotloos 8ooJ 1oqetbet 1o Cet klJ of lossll loel lovestmeots. 1he
new ?ork 1lmes. hLLp://
LogeLher-Lo-geL-rld-of-fossll-fuel-lnvesLmenLs/. 31 !an. 2014.
Llvlng on LarLh, º8lsky 8uslness," Þ8l'S LnvlronmenLal news Magazlne,
hLLp://•14-Þ13-00003€segmenLlu•1, 1
leb. 2014.
8osLon College, ítblcol ColJelloes,
hLLp://, 1 leb.