University News

Paxson confirms investment in coal companies

A University advisory committee will likely recommend divestment from coal companies

By
Senior Staff Writer
Continuing its campaign for Brown to divest from 15 coal technology companies, the Brown Divest Coal  Campaign hosted a protest on the Main Green Monday.

Continuing its campaign for Brown to divest from 15 coal technology companies, the Brown Divest Coal Campaign hosted a protest on the Main Green Monday.

President Christina Paxson acknowledged for the first time that the University is invested in some of the 15 major coal technology companies targeted by the Brown Divest Coal Campaign at a meeting with the members of the campaign, said University officials and students present in the discussions.

The Advisory Committee on Corporate Responsibility in Investment Policies is currently reviewing those investments and will likely recommend the University divest from coal companies, said ACCRIP member and Senior Lecturer of Engineering Christopher Bull ’79 SCM ’86 PhD’06. ACCRIP will meet tomorrow with Paxson and Executive Vice President for Finance and Administration Beppie Huidekoper.

Members of the Brown Divest Coal Campaign, which launched in September and aims to encourage the University to withdraw investments from major coal companies, met with Paxson during her office hours Feb. 12. Acknowledging that the University has investments in coal, Paxson told the group she was waiting on ACCRIP’s feedback before deciding how to handle these investments, said Katie Cohen ’13, who was present at the meeting. Paxson told group members that she “had been thinking a lot about (the) campaign,” Cohen added.

Though Paxson did not specify which of the five coal mining companies and 10 utility companies are part of the University’s investment portfolio, she indicated divestment from coal “would be a feasible thing for the University to do,” said Divest Coal member Emily Kirkland ’13.

Vice President for Public Affairs and University Relations Marisa Quinn confirmed the University’s financial involvement with coal companies but downplayed the size of these investments in an email to The Herald.

“Brown has less than one-tenth of 1 percent of the endowment invested in a small number of the companies cited by the Brown Divest Coal student group, or less than $2 million,” Quinn wrote. “We will communicate the outcome once the ACCRIP has made a recommendation and a final decision has been made.”

Following her meeting with ACCRIP tomorrow, Paxson will decide whether to recommend divestment to the Corporation, the University’s highest governing body, which will make the final decision on whether the University should divest, Bull said.

The conversation around divestment from what Brown Divest Coal calls the “filthy 15” was previously complicated by the University’s lack of a formal acknowledgement of its investment in these companies. But Bull said ACCRIP does not need absolute knowledge of University investments to make recommendations about the companies to which the University should avoid financially ties.

“That’s not how we make the decision,” he said. “We certainly can find out how many of those companies we have direct investments in, but typically that’s not public knowledge and that’s not something that we would probably make public.”

ACCRIP previously recommended divestment from HEI Hotels and Resorts following accusations the company violated legal labor standards, as well as “companies whose business activities can be shown to be supporting and facilitating” genocide in Darfur, according to the committee’s website. After the University divested from HEI, institutions including Yale, Penn, Vanderbilt University, Princeton and Harvard also announced they would not reinvest in the company.

When Brown Divest Coal presented to ACCRIP last November, the committee voted to draft a formal recommendation endorsing divestment from coal. But Kirkland said many members of Brown Divest Coal are frustrated with the pace of the conversation around divestment.

“The process as a whole has been taking a while and we’d like to see it moving more quickly,” she said.

Following their meeting with Paxson last month, Divest Coal continued holding public demonstrations to build pressure on University officials, leading a protest on the Main Green Monday. Addressing an audience of 40 to 50 students, group activists led call-and-response chants and held up construction paper to form a large, orange X logo, the symbol of the environmentalist Fossil Free campaign with which the group is affiliated.

Though they said they are excited to move forward with the campaign, many members of Brown Divest Coal said Paxson’s admission did not surprise them.

“I think that we all knew that the likelihood of us being endowed in one of these companies was extremely high because it’s the status quo, and right now we haven’t been shifting our status quo,” said Lucy Bates-Campbell ’13, one of the organizers of yesterday’s protest.

“We knew that if we weren’t invested that the University would have said so earlier,” Kirkland said.

  • Kristy

    PRESIDENT PAXSON, NOW IS THE TIME. DIVEST NOW!

  • Tom Bale ’63

    Good for President Paxson. Good for Emily Kirkland and Brown Divest Coal. What about the 90,000 Brown Alumni and your multiple investment portfolios? When are you going to divest?

    • Anon E. Mous

      I don’t own any now but I’d gladly buy Brown’s if they’re actually dumb enough to take a loss on it just to please hippies.

      • ’14

        hipSTERS, bro. Hippies are from the ’70s. We have hipsters now.

  • Ryan

    Now is the time for Brown to step up and be a leader in this national movement!

  • Dr. watson

    Wow…. Considering the ridiculously low price of coal stocks… they are demonstrating that they lack education and common sense. buy low and sell high idiots. don’t ask your university to take a loss because you think coal is bad. WAKE UP. Coal is America’s #1 most abundant natural resource. hating coal is like hating america….. and devaluing coal devalues America. end of lesson.

    • pferd

      now someone makes sense in contrast to the silly rambling from kids that do not have a clue

  • Dr. watson

    By the way, the decaying leaves on the forest floor are the largest contributorof carbon dioxide in the world….. why don’t you go rake some leaves and out them under argon so they Don’t decay? Because what you are doing now makes about as much sense.

  • pferd

    some of you make no sense. it makes one wonder why you are at a university?

  • pferd

    i wonder if they go home and demonstrate in front of their parents who own coal stocks and the profits of those stocks paid for their (wasted) education.

  • ’14

    It makes sense to divest from HEI Hotels, as they violated moral business practices. Coal companies are not morally (or legally) corrupt and do not violate American business practices. Coal provides (relatively) cheep power to millions of Americans, and decently paying jobs to thousands. Brown should invest its money in alternative energy (it’s no doubt a good long-term investment for an endowment) but should not be morally obligated to divest from coal companies, as they have not done anything wrong.

  • Hipster

    What a bunch of ignorant foolish children.