Stanford University has announced it will sell off its investments in fossil fuel companies, a move aimed at combating climate change.
The Stanford Board of Trustees approved a resolution pledging not to directly invest in companies for which coal extraction is their primary business and will divest any current holdings in such firms.
The vote followed the recommendation of a panel including students, faculty, staff and alumni that has been studying the impact of fossil-fuel companies for several months, the University said in a statement.
Stanford President John Hennessy said: “The University’s review has concluded that coal is one of the most carbon-intensive methods of energy generation and that other sources can be readily substituted for it. Moving away from coal in the investment context is a small but constructive step while work continues, at Stanford and elsewhere, to develop broadly viable sustainable energy solutions for the future.”
A student-led group had also asked the University to divest from 200 of the largest fossil-fuel companies.
Stanford has one of the world’s largest university endowments, valued at $18.7 billion (£11bn) as of August 31st last year.