Opinion Graphic
Technician recently reported that, as of Sept. 30, 2018, $43 million of NC State’s endowment is invested in “Oil, Gas, and Consumable Fuels.” There are a lot of things to be concerned about with our university investing money into fossil fuel-related industries. Human-caused climate change, caused by the burning of fossil fuels, is predicted to have direct and dire impacts on our state. As a university created to serve the people of North Carolina, and specifically young students, NC State has the obligation to responsibly invest our endowment in ways that support a better, cleaner future. Investments in fossil fuels are also economically questionable. The endowment should be invested in ways that fit a long-term mindset of steady growth, but investments in an ultimately limited resource directly contradict this practice.
More directly, this article demonstrates a related issue with our university’s Investment Fund: a lack of transparency in investment practices. Online, NC State provides quarterly updates of growth, but little information breaking down investment types beyond broad, uninformative categories, or “asset classes.” Mary Peloquin-Dodd, interim vice chancellor for finance and administration, told Technician “[more specific information beyond asset classes] isn’t necessarily something we would share with any individual, and it’s not something I can necessarily get my hands on anytime soon.”
First, it’s concerning that the financial leaders of our own university can’t easily access information on how endowment money is handled. Specifics on investment choices are handled by the NC State Investment Fund (NCSIF), a separate entity with a non-university-affiliated Board of Directors. Communication between NC State and the NCSIF should ideally be strong and free-flowing, but Peloquin-Dodd’s statement suggests that she’s unable to easily retrieve important details on investment practices. Secondly, information beyond asset classes should be shared publicly! Donors to NC State’s endowment trust that their money will be handled well and utilized in a way in-line with NC State’s ideals. Investment practices should not be separate from the university’s image. Simply put, donors have a right to know where their money is going.
This lack of information is especially pertinent considering Student Giving Day is just a few days away. It’s up to the individual to decide whether or not to donate to the university, but it’s understandably hard to willingly give money without knowing how it will be invested. If students wish to financially support the university in more transparent ways, they can consider donating to the Women’s Center, Multicultural Student Affairs, and other groups associated with the Office for Institutional Equity and Diversity (OIED). These organizations have specific goals to improve student life on campus, and students can give to them without going through the University’s Endowment Fund.
Robert Van Der Drift is a second-year studying meteorology and applied mathematics and a research executive for the Climate Reality Project at NC State.