February 19, 2020

Cornell Student Lays Out the Facts on Divestment, Calls for Solutions Not Empty Gestures

As the debate over divestment continues, a Letter to the Editor in the Cornell Sun from a class of 2020 student lays out why divestment is exactly the wrong move for the university. As it states, “Divestment would harm Cornell, reduce its influence and, most significantly, do absolutely nothing to fight climate change.”

From the opinion piece:

“Another key flaw with the divestment argument is that the minute Cornell sells its equity, it gives up its voice.  Voting with your feet isn’t nothing, but it certainly isn’t going to compel any major company to change its behavior.  On the other hand, companies would be much more likely to listen to their shareholders. If a large and influential endowment raises an issue at board meetings or via proxy or gives the management team a call, it would likely find a ready ear.  This is off the table if Cornell decides to categorically walk away.”

“{Energy companies} are rational economic actors extracting natural resources to provide energy and products that touch almost every corner of modern life.  If they are guilty of ruining the environment, that makes everyone who has ever touched a light switch, needed a petrochemical-based medical device or ridden in a car guilty by association.  If you actually care about the environment, don’t moan and groan about some share of stock that some pool of someone else’s money owns. Plant a tree, donate to a charity, support a serious advocacy campaign or get involved in renewable energy research.  These concrete actions do far more for the environment than demanding that Cornell sell any energy company equity it holds. Even if those calling for divestment prevailed, the only meaningful consequences would be the university missing out on any excess return it could have earned and losing any influence it could have exercised.”

These are the facts behind divestment. As this student highlights, it is time to focus on solutions not costly empty gestures.