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.
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 produce fossil fuels with a high level of GHG intensity, indicating a violation of Principles 1, 2 and/or 5.
Most recently, the CCIR approved the ACIR’s recommendation to add two more companies to the restricted list, this time 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 so far identified two 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.
The ACIR is aware that many companies in the fossil fuel industry are shifting their behavior and/or announcing new goals, some of which may ultimately address the ACIR’s concerns; thus, the ACIR will be monitoring 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.
The ACIR is continuing to develop criteria under Principle 4.
We continue to invite all members of the Yale community to submit their suggestions through a webform.
Fossil Fuel Producers No Longer Eligible for Yale’s Endowment Under Principles 1, 2 and/or 5
Fossil Fuel Producers No Longer Eligible for Yale’s Endowment Under Principle 3