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MacArthur Foundation joins investment shift away fossil fuels By Reuters

by Mike Robinson

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By Ross Kerber

BOSTON (Reuters) – The $8.2 billion MacArthur Foundation said on Wednesday it would divest from fossil fuel holdings with changes to its equity indexes, becoming the largest foundation to move money away from the oil and gas sector.

Some other institutions, such as Harvard University or the Maine state pensions system, have also taken similar measures in recent months amid growing climate change worries. However some investors would prefer to retain shares of energy companies to aid in reducing emissions.

In order to stop new private investments in fund that invests in oil and natural gas exploration, the John D. and Catherine T. MacArthur Foundation (Chicago) stopped investment in two years.

John Palfrey of MacArthur, the President, stated Wednesday that they would switch their equity exposure to indexes that do not exclude companies from fossil fuel reserves.

Palfrey stated that the foundation uses funds managed externally and told firms in an interview it wants to divest from fossil fuels.

“It’s not a simple matter with an $8 billion endowment that’s invested in long-term managed funds,” he said. “The big news is we’re committing to this pathway. We’re making it happen, it’s not something you can do easily.”

Ellen Dorsey (executive director of Wallace Global Fund), another philanthropy that tracks the region, stated MacArthur was the first foundation to make a public commitment to divesting fossil-fuels.

A similar move in 2016 by the Rockefeller Family Fund was noteworthy because a century ago John D. Rockefeller Sr. made a fortune running Standard Oil, a precursor to Exxon Mobil (NYSE:).

As of December 30, the MacArthur Foundation’s total assets were $8.2 Billion. According to a spokesperson, the amount of fossil fuels held by MacArthur was not available immediately.

It is well-known for the $625,000, no strings attached “genius” awards. Palfrey admitted that the foundation has funded organizations such as the Sierra Club. However, this has been criticized by Palfrey who acknowledged these efforts were at odds with their investments.

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