November 16, 2022 — In a report just released, Institute for Energy Economics and Financial Analysis (IEEFA) financial analyst Tom Sanzillo rakes TIAA for having its portfolio “awash in fossil fuels,” and charges TIAA with a major lapse in its fiduciary obligations for failing to consider fossil fuel divestment. Sanzillo asserts, “TIAA has a tremendous opportunity to lead with its climate action plan by promptly evaluating how to achieve its financial targets with a fossil-free portfolio.“
The report finds that:
- IEEFA conservatively estimates that TIAA’s enterprise-wide portfolio of $1.4 trillion contains $78 billion in fossil fuel risks.
- TIAA’s public corporate bond portfolio is heavily weighted with fossil fuels.
- TIAA’s private equity investments, currently called “other investments” and ranked a “low priority” for climate action, should be a much higher priority.
- TIAA’s failure to consider divestment as a mechanism to protect its portfolio is a striking lapse in its fiduciary obligations.