The Ford Foundation, one of the largest U.S. private foundations, will divest millions from fossil fuels that historically fuelled the gas auto engines responsible for seeding the charitable endeavors.
The foundation, which had a $16 billion endowment, announced Monday it would invest its energy portfolio in Renewable and Alternative Energy TAN, and funds that address the threat of climate change and support the transition to green economy. In 1936, Henry Ford — the son of Edsel Ford – the founder of Ford Motor Co. F — founded the Ford Foundation with an initial gift of $25,000. Ford Motor itself realised a market opportunity in the electric-vehicle space, creating an EV version of its best-selling F-150 pickup truck that it calls the Lightening. More electric pickup trucks are coming to market. Nonprofits, companies and governments are facing pressure from investors and other stakeholders in the fight to control climate change, particularly ahead of U.N. Climate Arm's ambitious reconvening of global powers in Glasgow in early November. Renewal of emissions-cutting pledges and aid to developing nations is top on the agenda. As with any important decision in a dynamic organization, this choice did not come without trade-offs, Ford Foundation President Darren Walker said in a statement. Although just 0.3% of the Ford Foundation s endowment is directly invested in fossil fuel companies CL 00, we take our duties as fiduciaries seriously and we re mindful that if we put restrictions on our investments we may forsake some amount of return for future generations, he said. The energy sector SPDR Fund XLE is positive in 2019 with the greenfield of fossil fuel prices, reflecting the decline in energy prices and solar energy. Its stock is almost 33% higher than the supply-side oil market in 2021 as of yet. The Harvard University, whose $42 billion endowment is the largest of any U.S. university professors, announced last month it had cut its investment in fossil fuels. MacArthur Foundation, a charitable group that has made a similar move, is a $7 billion investment property.