Despite pressure from students, faculty, alumni and others, American said it is not feasible to divest. Instead, it agreed to make more of an effort to invest more in alternative energy. The board said that avoiding fossil fuels would double the costs to manage its investments and might violate its legal, fiduciary duty to maximize returns. “In weighing the critical elements to partially divest, it was clear that the DC law surpassed the relevance of other considerations, including compelling arguments both for and against divestment,” the board wrote Friday in a public letter. “Since the conditions for board’s primary fiduciary responsibilities cannot be satisfied, the finance and investment committee concluded that divestment is not an option the board can take to express a position on climate change.”
Posted on: Sat, 22 Nov 2014 01:39:14 +0000
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