Office of the Assemblies

Dear Logan,

 

Thank you for submitting University Assembly Resolution 14, “Calling on the Teachers Insurance and Annuity Association of America (TIAA) to divest funds from all fossil fuel holdings and agribusiness practices associated with deforestation and human rights abuses,” for my consideration.

 

I share the UA’s deep concern about climate change, and I’m proud that Cornell is a leader in climate research and in adopting more sustainable practices that have decreased our campus carbon footprint in recent years. As pointed out in the resolution, targeted investment policies can represent another positive action, and the decision by the Investment Committee of the Board of Trustees to institute a moratorium on new private investments focused on fossil fuels and to grow the university’s investments in alternative energy technologies sends a positive signal that Cornell recognizes the seriousness of the climate crisis.

 

However, the investment choices of individual employees from among the university’s retirement plan offerings are not within Cornell’s control, and rightly so. The university selects a range of investment fund options for employees and has a legal responsibility to make these selections exclusively based on the financial best interests of participants, and may not make selections that reflect university policy concerns such as divestment. Cornell monitors the diversity and performance of the funds offered in the investment selection portfolio in the retirement plans, but employees are the only ones who can decide if and how they invest their money. Those who choose TIAA also select among a range of options and funds that TIAA offers, including one that gives special consideration to certain environmental, social, and governance criteria, but as an employer, Cornell does not have a role in their choices.

 

Cornell would be overstepping in seeking to limit employee investment options by publicly urging TIAA to divest from fossil fuel companies. For this reason, I must reject this resolution. Of course, all of our employees have the right as private citizens to make their views known on these issues and to choose to invest, or not to invest, as they deem appropriate.

 

Sincerely,

 

Martha E. Pollack

 

Martha E. Pollack

President, Cornell University

300 Day Hall

Ithaca, NY  14853