Time to Divest

As the last trees on campus dramatically change from green to gold, it is hard for members of the Middlebury community to lose sight of their natural surroundings. In fact, such a pristine backdrop makes it clear why the College was inspired to found the nation’s first Program in Environmental Studies, a program that celebrates its 50th anniversary this year. As we attend these celebrations and take in our beautiful surroundings, we would do well to consider the ways in which Middlebury can continue to be a leader in the field of environmental stewardship.

After reflecting on Middlebury’s principles and stated aims, we as an editorial board would like to officially endorse the withdrawal of College funds from industries of environmental degradation – a process known to many as divestment. Upon reviewing the evidence, we have concluded that drawbacks are scant compared to the benefits of actualizing our values in this way. A number of our editors remember hearing divestment discussed around campus over the years, but few recall a moment when the time felt more right to finally take action.

In 2012, Divest Middlebury started a campaign calling on the administration to remove our investments from the top 200 fossil fuel companies. Groups such as the Socially Responsible Investing Club and Sunday Night Group endorsed the move, but their cause did not garner enough support for the administration to alter Middlebury’s investment strategy. Instead, the College stuck with Investure, an endowment manager, which invests 1 percent of our endowment in top 200 oil and gas companies.

This portion of our endowment sits with money from Trinity College, Barnard College, Dickinson College, Smith College and the University of Tulsa, with whom we reside in a consortium of investors. While it is unlikely that the College breaks its ties to investiture because of the returns and structure it provides, we propose that Middlebury, along with other schools within the consortium where divestment movements are equally relevant, form a group within the fund that is divested. While this poses a logistical challenge, we do not believe it is insurmountable. Our consortium makes up six of Investure’s 13 clients, a proportion that would incentivize investure to meet our demands to avoid losing half of its clients. While coordinating with so many separate institutions may prove difficult, there is the potential to harness our near-majority influence and insist that Investure divest.

Furthermore, Middlebury should lead the charge as a pioneer in the field of sustainability. We recently celebrated the 50th anniversary of our program in Environmental Studies. Middlebury’s webpage describing the event proclaims, “In five decades, Middlebury has left an indelible mark on the environment and sustainability in higher education. Today, the College is an internationally recognized leader in environmental thought, research, and action…” But we see a disparity in what the College proclaims as our environmental mission and in our actions taken.
Middlebury loves to tout its goal of carbon neutrality by 2016, yet how can we stand by this pledge when the carbon footprint from our investments renders it meaningless? The College claims to be a “leader in environmental… action,” but how can we say this if we cower behind the bureaucracy of Investure and do not attempt to leverage our case on divestment?

Perhaps it is time that we drew our attention back to the students, where the divestment movement began and where its success depends. Divest Middlebury has made limited progress in persuading the Board of Trustees thus far, but we believe that this results from the lukewarm support of the student body. While many of us have appeased our peers by signing their petitions for divestment, or perhaps we have even read an op-ed from Divest Middlebury, a lack of enthusiasm for the campaign across campus has characterized the cause.

Many of us on the editorial board – and we expect that a number of our classmates could say the same – had not given much thought to divestment, but felt instinctively doubtful of it. We feel that some of the tactics employed by Divest Middlebury in the past have trivialized the group’s message. This skepticism also reflects an assumption shared by many students that divestment would negatively affect the College’s bottom line.

Therefore, the Campus would like to set the record straight once and for all and proclaim our undeviating support for the cause. While divestment might seem too good to be true for Middlebury, it is not. According to the investment management firm Aperio Group, divesting from the entire oil, gas and consumable fuels industry has a 0.0034 percent penalty on returns and a 0.0101 percent increase in risk, quelling the fears of those worried about divestment’s financial losses.

Choosing to divest has political ramifications that will extend beyond the cause’s short-term gains. Middlebury’s decision to withdraw funds from fossil fuel industries will likely spur our peer institutions to do the same. Furthermore, it will encourage environmentally-conscious applicants – a demographic that only grows with new generations – to consider our College more seriously for its role as a bellwether of divestment.

The College’s own website celebrating “50 Years of Environmental Education & Leadership” states, “As we prepare for our 50th anniversary celebration, we ask ourselves – as we ask our students – not what is reasonable but what is possible. Not what is easy but what is right. And not what is now but what is next.” We call on the College to heed its own admirable words. To embrace the right choice, not the easy choice. Divestment may not be “what is now,” but it could — and ought — to be next. Let’s live up to our reputation.