Policy on Impact Investments and Fossil Fuel Divestment

Adopted by the Georgetown University Board of Directors on February 6, 2020

  1. Georgetown University will continue to seek investments in renewable energy, energy efficiency, and other companies contributing to our transition to a more sustainable world provided that these investments target a market rate of return on par with similar assets in the endowment.
  2. Georgetown University will cease making new investments in any company or fund whose primary business is the exploration or extraction of fossil fuels, including all forms of coal, oil, and natural gas.
  3. Georgetown University will divest from public securities of any company whose primary business is the exploration or extraction of fossil fuels, including all forms of coal, oil, and natural gas, within the next five years.
  4. Georgetown University will divest from private investments in any company whose primary business is the exploration or extraction of fossil fuels, including all forms of coal, oil, and natural gas, as soon as it is prudent and within the next ten years.[1]  The University will divest fossil fuel holdings during this time in a manner that is both financially responsible and expeditious.
  5. Although the University intends to achieve full divestment going forward, some commingled investment funds may hold exposures to fossil fuel companies. Georgetown will prudently evaluate these managers on a case-by-case basis. 

[1] The University is committed to divesting from private investments as soon as it is prudent and no later than ten years because private investments often involve binding multi-year commitments.  The University needs flexibility in divesting from private investments during this time to avoid incurring substantial losses by withdrawing from these private investments before they reach maturity.