Implementation of the Fossil Fuel Investment Principles

Following the adoption of the Fossil Fuel Investment Principles by the Yale Board of Trustees in April 2021, the ACIR began its task of applying the Principles and recommending to the CCIR fossil fuel producers that should no longer be eligible for investment by the Endowment.

The Principles are as follows:

Principle No. 1
Fossil fuel producers should neither explore for, produce or supply fossil fuels, nor engage in methods of extraction, that result in high greenhouse gas (GHG) emissions relative to energy supplied, if there are feasible alternatives that result in significantly lower GHG emissions.

Principle No. 2
Fossil fuel producers should operate in a manner consistent with best industry practices to reduce GHG emissions.

Principle No. 3
Fossil fuel producers should not undermine but support sensible government regulation and industry self-regulation addressing climate change.

Principle No. 4
Fossil fuel producers should not undermine but support accurate climate science and accurate public communication about fossil fuel products, climate science, and  climate change.

Principle No. 5
Fossil fuel producers should be transparent with Yale and Yale’s Investment Managers about their compliance with Principles Nos. 1 through 4.

Principles 1, 2, and/or 5. The CCIR approved the ACIR’s recommendation that coal producers no longer be eligible for the Endowment under Principle 1, because there are feasible alternatives to coal that result in less GHG emissions relative to energy supplied. The CCIR also approved the ACIR’s recommendation that certain oil and gas companies no longer be eligible for the Endowment because they fail to disclose their Scope 1 and Scope 2 GHG emissions, or they produce fossil fuels with a high level of GHG intensity, indicating a violation of Principles 1, 2 and/or 5. 

Principle 3. The CCIR has also approved the ACIR’s recommendation to add companies to the restricted list on the basis of Principle 3. The ACIR examined those oil and gas companies it believes have the greatest potential to influence policy, and mapped their statements, activities, and inactions against those policies that have the greatest potential to affect climate change. Based on all the evidence reviewed, the ACIR has identified four companies it finds to be in violation of Principle 3. More names may be added in the future; however, the ACIR intends to focus on the companies with the most power to influence policy.

Principle 4. The ACIR is continuing to develop criteria under Principle 4; however this Principle has been more difficult to implement given challenges around evidentiary data; furthermore, fossil fuel companies more consistently acknowledge the reality of climate change and the role of fossil fuels in contributing to climate change in their public communications. 

Future Monitoring. The ACIR is aware that many companies in the fossil fuel industry are shifting their behaviors and/or announcing new goals, some of which may ultimately address the ACIR’s concerns. Thus, the ACIR will monitor the companies’ progress. As stated in the report of the Committee on Fossil Fuel Investment Principles, the application of these Principles is expected to be dynamic. As part of the monitoring process, the ACIR continues to invite all members of the Yale community to submit their suggestions through a webform.

The following list is subject to change based on periodic updates by the ACIR, subject to approval by the CCIR.

Fossil Fuel Producers No Longer Eligible for Yale’s Endowment Under Principles 1, 2 and/or 5

105 companies are ineligible for investment under FFIP 1, 2, and/or 5 due to non-disclosure or high emissions intensity. Of the 105 companies, the following 64 are ineligible due to non-disclosure.