Reinvestment in climate solutions
Your endowment can fund the future through reinvestment in climate solutions!
What is Reinvestment?
Reinvestment is the investment of capital (money) in solutions to climate change. More specifically, reinvestment is investment in the technologies and infrastructure.
that will allow us to meet our energy needs in a way that improves community health, supports local autonomy, and mitigates the impacts of climate change globally especially for those who will be most affected.
Clean technology, energy efficiency, and other sustainable technologies are a growing market, with over $260 billion invested globally last year, and have an attractive growth potential.
While fossil fuel companies have made modest investments in renewable energy research, their core business model is centered on extracting the fossil fuels from the reserves they currently own and exploiting new fossil fuel reserves. Under this business as usual scenario we cannot advocate for investment in any fossil fuel company as a sustainable or responsible investment.
How can you integrate reinvestment into your divestment campaign?
We demand that universities reinvest 5% of the endowment in the next 5 years in climate solutions. This number is slightly higher than the estimate of current university investments in the fossil fuel industry.
If all US universities took similar steps we would generate $20 billion, one of the biggest investments in the green economy to date. It would double the investment that the Clinton Global Initiative, in partnership with some of the largest pension funds in the nation, pledged for energy efficient infrastructure in 20111.
To mitigate the effects of climate change, it is more strategic to invest directly in solutions than to engage in the slow, incremental process of filing shareholder resolutions to reform the fossil fuel industry. Divestment frees capital for investments in these solutions.
Learn more by downloading A Complete Guide to Reinvestment (on the right under resources & tools), which answers the questions:
- How is reinvestment a justice issue?
- How is reinvestment a fiduciary duty?
- What is the impact of reinvestment?
- How does reinvestment benefit local communities?
- How does reinvestment benefit universities?
- What types of reinvestment exit?
- And more!