Public Letter to University of California Chief Investment Officer and Vice President of Investments

The Private Equity Stakeholder Project argues against the University of California (UC) potentially reversing its 2020 decision to divest from fossil fuels. The letter asserts that fossil fuel investments are financially risky, citing the underperformance of fossil-fuel-heavy portfolios and the volatility of the LNG market. It further highlights the material threats of climate change to California, including astronomical wildfire costs, and warns that demand forecasts for data center power may be overstated, potentially misleading investors.

• The University of California's own 2024 TCFD report indicates that negative screening of fossil fuel reserves is an effective way to manage transition risks and that excluding these companies has resulted in higher net returns over one, five, and 10-year periods compared to the MSCI ACWI IMI Index.
• Climate-related financial risks are significant, with US weather disasters costing over $460 billion and causing more than 1,800 deaths since 2021, while global annual climate damages are projected to reach $38 trillion by 2049.
• Wildfires in Los Angeles have caused severe economic damage, with property and capital losses estimated between $76 billion and $131 billion, alongside GDP losses of approximately $4.6 billion and wage losses of $297 million for local businesses.
• Investments in fossil fuels, particularly through private equity, are characterized as risky; institutional portfolios containing fossil fuels have consistently underperformed peer funds without them over the last decade.
• The global LNG market is unstable due to trade wars and tariffs, and unfettered LNG exports could increase US wholesale domestic natural gas prices by more than 30%.
• The 2024 Private Equity Climate Risks Scorecard found that only 21 private equity firms are responsible for more than 1.17 gigatons of annual emissions.

APA

Schafer, A. J. (2025). Public Letter to University of California Chief Investment Officer and Vice President of Investments. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2025/04/public_letter_to_university_of_california_chief_investment_officer_and_vice_president_of_investments.pdf

Chicago

Schafer, Alissa Jean. Public Letter to University of California Chief Investment Officer and Vice President of Investments. Private Equity Stakeholder Project, 2025. https://pestakeholder.org/wp-content/uploads/2025/04/public_letter_to_university_of_california_chief_investment_officer_and_vice_president_of_investments.pdf.

Wikipedia

{{cite press release |last1=Schafer |first1=Alissa Jean |title=Public Letter to University of California Chief Investment Officer and Vice President of Investments |publisher=Private Equity Stakeholder Project |date=15 April 2025 |url=https://pestakeholder.org/wp-content/uploads/2025/04/public_letter_to_university_of_california_chief_investment_officer_and_vice_president_of_investments.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{schafer2025public, author = {Schafer, Alissa Jean}, title = {{Public Letter to University of California Chief Investment Officer and Vice President of Investments}}, publisher = {Private Equity Stakeholder Project}, year = {2025}, month = apr, url = {https://pestakeholder.org/wp-content/uploads/2025/04/public_letter_to_university_of_california_chief_investment_officer_and_vice_president_of_investments.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }