A friend just reminded me of this. They wrote:
Michigan State University recently trumpeted its return on investments(ROI) for their endowment. As is usual with PR departments, and too frequently the minds of leadership, they ignore the costs of their institutional gains. If the only thing one measures is their own financial gain, then essentially it means nothing else matters. This kind of constant financial growth mindset has led us to the polycrisis we face as members of the family of life with which we share this planet.
How much of those celebrated ROI gains were gathered by investing in fossil fuels, in weapons of war, in stock-market gamesmanship, etc. There is little serious accounting done. When challenged by students and others to divest from fossil fuel companies or in firms making weapons of war, the university claims it has too many investments to try and figure that out, and besides they claim, those decisions are made by others under contract. <snip>
The University of Michigan and Northern Michigan University have each committed to divest from fossil fuels. These are indeed good steps, but the driving mindset that financial gain is the only true measure of success needs a serious rebuttal. It’s long pastime that investments should aim to build a better world for all, not simply line the pockets of those fortunate enough to have capital to invest. We need to at least hold our public institutions to that standard. Let your voices be heard.
Years ago, in the very early days of this century, I sat down with some of the Physical Plant Managers from Michigan State University, and they showed me their project notebook, in a 3 or 4-inch three ring binder. I have never forgotten this experience. The notebook included over $150 million worth of energy cost-avoidance projects that they had already identified, all of which would have 18-month or faster payback. NONE of those projects were being worked on because of the lack of funding available for maintenance and upkeep of the campus buildings. Of course new construction on this huge campus was proceeding, because new capital projects could find their place in the legislative and administrative budgeting, but not these slam-dunk energy cost saving opportunities.
We sat reviewing this notebook, immediately across the hallway from the Michigan State University endowments office, which was touting its “best in class” earnings for that year on its investment portfolio, which had earned about 3% annual returns at the time. So there they were with billions of dollars to invest, earning about 3% annual returns, while very low-risk opportunities for investing with 30% or greater annual returns were sitting there unfunded.
We should think in terms of magnifying those numbers by: (1) all of the colleges, universities, schools, and facilities where Michigan taxpayers are paying the utility bills (or, as I like to say, "futility" bills); (2) the constant progress that keeps making broader and deeper energy savings and self-service power systems more and more cost effective; (3) the hundreds of Michigan companies with shovel-ready products for meeting such goals; and (4) the environmental, social, and public health benefits associated with smart energy saving solutions.
The good news is that we can mount our own endowment fund in Michigan, using crowd-investing options to earn tax exempt returns on such investments. There are already multiple companies operating in these realms to the tune of $100 milliion or more per year. And, we can all learn to use our self-directed retirement funds to make these investments, doing good while our investments do well.
Let us know when you are aready to start!
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