The Rockefeller Foundation plans to divest from fossil fuels.
The $5 billion New York-based foundation, which was originally funded from proceeds of oil production, announced in a news release on Dec. 18 that not only would it divest from its current fossil fuel holdings, but that it would also refrain from investing in the sector going forward.
Roughly 2% of the foundation's assets are currently in fossil fuel holdings. It will cut this allocation down to less than 1% "in the near future," according to the release. A foundation spokeswoman declined to comment on a specific timeframe or how these funds will be reallocated within the overall portfolio.
"The endowment's total private fossil fuel exposure declined in recent years in part because of global energy transition trends and heightened sustainability risks in the sector, but also because we actively narrowed the resources portfolio to less than a handful of managers who place strong focus on ESG integration and avoided dedicated investments in the heaviest emitting fossil fuels," said Chun Lai, Rockefeller Foundation chief investment officer, in the release.
Rockefeller Foundation President Rajiv J. Shah added in the release that "since the science is clear on the harm caused by fossil fuels, it was time that we officially aligned our internal investment strategy with our external values and mission" of promoting "the well-being of humanity throughout the world" through "science and innovation."