ERIC Number: EJ885233
Record Type: Journal
Publication Date: 2010
Endowment Investing: Time for a Sustainability Play?
Pelletier, Stephen G.
Trusteeship, v18 n2 p24-28 Mar-Apr 2010
Managers of university endowment funds are paying closer attention to investing in "green" industries, commonly bundled under the umbrella "cleantech." Cleantech offers the possibility of buying in while prices are low "and" making a "green" investment play, but it also harbors the risks inherent in any emerging industry. Cleantech has varying definitions, but generally refers to companies involved in "green" energy production or storage (think wind and solar), renewable fuels (biofuels), energy efficiency, and greener approaches to traditional fuels (e.g., nuclear power or "clean" coal). Social considerations aside, investors need to determine whether now is the right time, from a business perspective, to put money into cleantech. It is a conundrum that many financial experts couch in terms of the rise and fall of Internet investing--the big question is whether cleantech today is more equivalent to the dot.com boom or to its bust. Even as campuses embrace sustainability, institutional investors need to maintain perspective, tempering enthusiasm about "going green" with objective analysis and the normal due diligence. In this article, the author considers whether it is time, from a business perspective, to put money into "green" initiatives.
Descriptors: Higher Education, Endowment Funds, Investment, Trusts (Financial), Responsibility, Money Management, Fuels, Energy Conservation, Sustainable Development, Conflict of Interest, Social Change
Association of Governing Boards of Universities and Colleges. 1 Dupont Circle Suite 400, Washington, DC 20036. Tel: 800-356-6317; Tel: 202-296-8400; Fax: 202-223-7053; Web site: http://www.agb.org
Publication Type: Journal Articles; Reports - Evaluative
Education Level: Higher Education
Authoring Institution: N/A