Harvard Embracing Fossil Fuel Condemned by Gore on Filthy Lucre – Bloomberg 04-04-13

Salient to Investors:

Students at more than 300 campuses, including the eight Ivy League schools, have joined fossil-fuel divestment activist group 350.org demanding that over the next 5 years universities purge their endowments of investments in 200 publicly traded companies with the largest reserves of oil, gas and coal.

Scientists estimate 350 parts per million of CO2 in the atmosphere is the safe limit for humanity. The measure is now approaching 400 parts per million, the highest in Earth’s recent geological history and considered by many scientists to be the cause of warmer temperatures, melting polar ice caps and by some calculations more severe storm systems.

David Salem at Windhorse Capital Mgmt said trustees will have trouble approving restrictions on a university’s portfolio – the long-term costs are inherently unknowable.

Universities have become so much more dependent on endowments to subsidize operations that there is little incentive to restrict investments. Energy makes up 11 percent of the value in the S&P 500.

Of the 4 alternative energy investments Yale featured in its 2009 investment report, at least 2 are foundering after natural gas prices fell. Not much is known about Harvard’s holdings because little of it is invested directly in publicly traded securities.

Carbon Tracker Initiative says oil, gas and coal stocks are overvalued because all their reserves could not be burned without destroying the planet.

Read the full article at http://www.bloomberg.com/news/2013-04-05/harvard-embracing-fossil-fuel-condemned-by-gore-on-filthy-lucre.html

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Pollution Fight Fading as European Leaders Battle Crisis – Bloomberg 11-23-12

Salient to Investors:

EU leaders didn’t discuss climate strategy at their four summits this year, and the matter didn’t emerge during US presidential debates.

Fatih Birol at the IEA said climate policy is sliding off the international policy agenda. Scientists are increasingly concerned that the time to react is passing. Birol said the more we put off tacking climate change, the more costly it will be, making it even more difficult to have an agreement – a vicious circle.

EU’s 5 biggest economies have lowered support for renewables in the past 2 years.

20111 was the 9th warmest on record, while 9 of the 10 warmest years since 1880 have occurred since 2000.

The World Bank says that 4 degrees of warming by 2100, possible without a major action, would cause cataclysmic changes, including a 3-foot rise in sea levels, depleted crop yields and dissolving coral reefs.

Read the full article at http://www.bloomberg.com/news/2012-11-23/pollution-sets-record-as-euro-crisis-slows-climate-drive.html