BlackRock Launches Fossil Fuel-Free Fund for Oxford University
November 10 2020 - 8:50AM
Dow Jones News
By Maitane Sardon
BlackRock Inc. said Tuesday that it has launched a fossil
fuel-free equity index fund to help the British University of
Oxford achieve its goal of divesting its endowment from fossil-fuel
companies.
The asset manager said it has worked with the Oxford University
Endowment Management, which manages 4.1 billion pounds ($5.4
billion) in assets for investors in the Oxford Endowment Fund, to
design an investment product that fits with the resolution to
divest from fossil fuels while keeping the same levels of liquidity
and bonds.
The fund, the iShares Developed World Fossil Fuel Screened
Equity Index Fund, tracks the companies in the MSCI World Select
Fossil Fuel Screened Index, a benchmark BlackRock said has been
custom-made by index and data provider MSCI Inc.
BlackRock said the fund doesn't invest in companies directly
involved in fossil-fuel extraction, production and exploration as
well as those owning fossil-fuel reserves. It also excludes
companies or sectors associated with controversial nuclear and
civilian weapons, tobacco, thermal coal and tar sands.
Certain companies that aren't compliant with the United Nations
Global Compact principles will also be excluded from the fund, it
said. The UN Global Compact is a voluntary framework for companies
to align their activities with ten principles in the areas of human
rights and the environment.
The launch comes as the movement to exclude the high-polluting
sector from university endowments continues to gain ground in the
U.K and globally. Last month, the University of Cambridge outlined
plans to exit fossil fuels over the next ten years as part of its
goal to achieve net-zero emissions by 2030. Both Oxford and
Cambridge are part of a group of more than half of the country's
154 public universities that have committed to divest from the
industry, according to People & Planet.
Pressure is also mounting at U.S. universities to ditch oil and
gas. In May, Cornell University said it won't add new fossil-fuel
investments to its $6.9 billion endowment portfolio. George
Washington University pledged in late June to sell its shares in
fossil-fuel companies over the next five years.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
November 10, 2020 08:35 ET (13:35 GMT)
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