New York University has officially announced it is rejecting divestment in a newly released memorandum to the NYU community. This spring, student activists and campaigners in support of the divestment movement called upon the university to divest its holdings in fossil fuels, despite the costs of such a decision. Luckily for the NYU endowment and its beneficiaries, the school has rejected such a decision.
As previously featured on DivestmentFacts.com, a report from Prof. Bradford Cornell of UCLA specifically determined how much divestment would cost at NYU and four other leading universities. According to this report, NYU’s endowment would** lose $4.16 million every year** if it divested from fossil fuels. In addition a recent report by Prof. Bessembinder of Arizona State University finds there are serious fees to consider in regard to the transaction and management fees of divesting, and keeping a fund divested. NYU agreed today, noting “to accomplish the goals proposed in the Senate resolution would require us to invest only with firms that have renounced fossil fuel related investments. This would significantly limit the choices we may make in investment managers, thereby limiting our ability to seek out the best long-term investment opportunities for the endowment.”
With college heeding demands of those with no conceivable understanding of reality who think everything is a microaggression or want to basically remake an institution into their vision of life it is refreshing to see a college stand up to these children and troublemakers.