John D. Rockefeller paved the way for his family's riches when he founded Standard Oil back in 1870. The Rockefellers, however, will be stepping away from that history as the Rockefeller Brothers Fund divests from fossil fuels.
Just in time for the Sept. 23 opening of the United Nations Climate Summit, the Rockefellers announced the family's decision to veer away from fossil fuels and invest in more alternative sources of energy. The Rockefeller Brothers Fund is a $860-million philanthropic organization, so where it uses its money will definitely have an impact.
The Rockefellers join 180 other institutions and hundreds more of individual investors who have promised to sell their assets that are tied to fossil fuels, a pledge that so far totaled over $50 billion from the institutions and over $1 billion from individuals.
"Investors are owners of large segments of the global economy as well as custodians of citizens' savings around the world. Having such a critical mass of them demand a transition to the low-carbon and green economy is exactly the signal governments need in order to move to ambitious action quickly," said Achim Steiner, U.N. undersecretary-general and environment program executive director.
According to Steven Rockefeller, a trustee of the fund and son of Nelson A. Rockefeller, the family's move is seen as having both an economic and moral dimension. Fund President Stephen Heintz also said that the Rockefeller Brothers Fund has already removed all of its investments in tar sands and coals while adding to those involved in alternative energy, adding that its decision to divest is well in line with the wishes of family patriarch John D. Rockefeller.
"We are quite convinced that if he were alive today, as an astute businessman looking out to the future, he would be moving out of fossil fuels and investing in clean, renewable energy," Heintz adds.
Since the start of the year, campuses, cities, states, churches, pension funds, and other institutions, both in the United States and abroad, have been making commitments toward divesting from fossil fuel investments, one of the most high profile of which is Stanford University. The education institution said in May that it will no longer be using any portion of its endowment fund, which amounts to $18.7 billion, to invest in coal mining efforts.
Global Divest/Invest Coalition founder Ellen Dorsey said that not everyone will be willing to divest right away or completely, but the key is that institutions are starting to move toward a common coal. The Global Divest/Invest Coalition is the organization responsible for bringing about this interest in divesting from fossil fuels.
