Quantifying the Real-World Financial Costs of University Divestment from Fossil Energy

As opponents of oil and gas development continue to urge colleges and universities to divest their endowments of fossil-fuel related stocks, a new study suggests the costs associated with adopting such policies are real and enormous. Authored by Professor Daniel R. Fischel, president of Compass Lexecon and a professor emeritus of law and business at the University of Chicago Law School, this first-of-its-kind report compares two investment portfolios over a 50-year period: one that included energy-related stocks, and another that did not. Based on those models, Prof. Fischel and his team found the costs of divestment will result in the displacement of billions annually from school endowments that could be otherwise used to improve services, enhance academic programs, and provide support to students from disadvantaged backgrounds, all while having no discernable effect on the companies actually being targeted by these divestment policies.

Learn more at  http://divestmentfacts.com/the-facts/.


Daniel Fischel

President, Professor
Compass Lexecon, The University of Chicago Law School