Oregon's Jewish Federations Lead Climate Action by Divesting from Fossil Fuels
In a groundbreaking move, Oregon's Jewish communal federations have taken a significant step towards addressing the climate crisis by divesting their endowment funds from the fossil fuel industry. This decision positions the Jewish Federation of Greater Portland and the Jewish Federation of Lane County as the pioneers among North America's 146 Jewish federations in committing to an environmentally sustainable future. Collectively, these federations represent around 60,000 Jews and hold over $3 million in investment assets.
The announcement, made on behalf of the federations by Dayenu, a prominent Jewish climate advocacy group, underscores the increasing recognition within the Jewish community of the imperative for climate action. Dayenu's CEO, Jennie Rosenn, highlighted the move as a "common-sense approach to aligning investments with values and taking meaningful action on climate."
This decision aligns with a wider trend observed globally, where more than 1,600 institutions and organizations, including several faith-based groups, have committed to climate investment pledges. However, among Jewish organizations, only three groups had previously announced fossil fuel divestments before this decisive move by the Oregon federations.
The rationale behind the divestment extends beyond environmental concerns, touching upon financial prudence. Hank Kaplan, a board member of the Portland Jewish federation, pointed out that fossil fuels are not only the primary drivers of the climate crisis but also represent a declining industry that has consistently underperformed in the market over the past decade.
Dayenu's push for divestment arose after identifying that Jewish communal organizations had approximately $3 billion tied up in the oil, gas, or coal sectors in 2022. This initiative is part of a larger effort to encourage Jewish institutions to pivot towards clean energy solutions and sustainable investment practices.
The federations are leveraging a fossil-fuel-free investment pool offered by the Oregon Jewish Community Foundation, which oversees their investments. The availability of such fossil-fuel-free options is seen as a critical step in persuading more Jewish communal funds to adopt environmentally friendly investment strategies.
Jacob Siegel, Dayenu’s climate finance advisor, emphasized the broader impact of these decisions, stating that the goal is not solely about the financial implications but also about "changing the market signals more generally."
This move by Oregon's Jewish federations marks an important milestone in the Jewish community's engagement with climate advocacy and sustainable investing. It reflects a growing awareness of the need to align financial decisions with ethical values and the urgent call to action against the climate crisis.
Analyst comment
Positive news. The divestment from fossil fuels by Oregon’s Jewish communal federations is a significant step towards addressing the climate crisis. It aligns with a global trend of institutions committing to climate investment pledges. The decision is not only environmentally responsible but also financially prudent, as the fossil fuel industry has consistently underperformed. By leveraging fossil-fuel-free investment options, the federations are encouraging more Jewish communal funds to adopt sustainable investment practices. The move aims to change market signals and reflects a growing awareness of the need for climate action.