Since 2021, Loyola Marymount University has been divesting from the fossil fuel industry. This includes reinvesting millions of dollars out of fossil fuel-related holdings and into other investments.
LMU will be fully divested from fossil fuels by 2030. The university has made no new investments in any funds that have exposure to the fossil fuel industry since enacting its divestment strategy. Any remaining fossil fuel-related investments within LMU’s portfolio are due to contractual obligations that would be prohibitively costly to exit before the scheduled end date.
“We are proud of the progress we have accomplished and we will continue to seek opportunities to enhance our endowment,” said Fidel Aguayo, vice president of treasury and investment and a 2013 Executive MBA degree holder from the LMU College of Business Administration.
LMU’s divestment plan was created by its Responsible Investment Advisory Committee, a group of representatives that includes students, faculty, and administrators. The committee serves as the primary listening and discerning body at LMU on topics related to responsible investing within the endowment portfolio. Later this academic year, LMU will launch a four-part podcast that will provide an overview of responsible investing, an introduction to LMU’s endowment, discuss divestment, and highlight LMU’s commitment to responsible investing and sustainability. The goal of the podcast series is to inform, educate, and enlighten the LMU community and its stakeholders. These, actions including the accomplishments listed below, are consistent with LMU’s longstanding commitment to responsible investing:
- In 2017, LMU signed onto the United Nations’ Principles for Responsible Investing.
- In 2018, LMU issued $90 million in “green bonds,” a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmentally friendly projects. The bond proceeds were used to fund the Residence Halls. The Residence Halls were built to achieve high performance in several categories of sustainable design including water and energy efficiencies, indoor environmental quality, access to transit, bicycle facilities, and green vehicles.
- In 2022, the university invested a significant amount of endowment proceeds in environment, social, and governance-related funds.
In addition, through its Green LMU program, the university is a leader in energy conservation, sustainable building construction, waste reduction, and other measures.
Follow the progress of LMU’s Responsible Investment planning here.