Loyola University Chicago's board of trustees has approved a new sustainable investment policy that will lead to a divestment from many fossil fuel-related investments.
The new policy, developed by the board's investment policy committee, has been under development over the past year to "create a more sustainable investment strategy that aligns with Loyola's Jesuit mission," according to a Thursday letter to the university community from Jo Ann Rooney, its president, and Wayne Magdziarz, senior vice president and chief financial officer.
The new policy outlines plans to divest from corporations that derive a majority of their revenue from fossil fuels and are not undergoing a transition to clean energy sources, the letter said.
The policy includes divesting from any directly held marketable and liquid securities under the fossil fuel divestment guidelines in a manner that is "financially responsible, yet expeditious;" allow private and illiquid investments in fossil fuel-related funds to wind down; monitor indirect exposure to fossil fuel companies in commingled funds on a case-by-case basis; and maintain exposure on case-by-case basis in companies that have fossil-fuel exposure but which are transitioning their business models to address climate solutions.
The policy also says the university will proactively seek investment opportunities with companies or funds that "reduce carbon emissions and greenhouse gases, promote social responsibility and seek solutions for climate change," the letter said.
As of June 30, Loyola University Chicago had $1.1 billion in endowment and other long-term investment assets, according to its most recent financial report. University spokeswoman Anna Rozenich could not immediately provide further information.
