Colleges and philanthropists urged to divest fossil fuels from endowments
98 present and former recipients of Cambridge University scholarships funded by the Bill and Melinda Gates Foundation have attacked the global health charity’s “untenable” investments in fossil fuels. A recent study by the Lancet and University College London recently found that climate change threatens to reverse half a century of improvements in global health. Meanwhile, the London School of Economics will decide on Wednesday night whether to divest its endowment from fossil fuels. A recent report found that if the school had dropped its shares three years ago it would now be £3m better off.

Recipients of Cambridge University scholarships funded by and named in honour of the Bill and Melinda Gates Foundation have attacked the global health charity’s “untenable” investments in fossil fuels.

In a letter, 98 present and former Gates scholars urged the world’s largest charitable foundation to drop coal, oil and gas companies from its $43bn fund.

“Climate change undermines improvements in global health, as well as in local and international food security: areas the Gates Foundation has championed. As much recent research – including some of our own ongoing work – shows, a stable climate is essential for ensuring the well-being of humans across the world,” the letter read.

A recent study by the Lancet and University College London recently found that climate change threatens to reverse half a century of improvements in global health.

Research suggests climate change is allowing malaria-carrying mosquitos to spread to highland regions in Africa, South America and south-east Asia, exposing entire new populations to the deadly disease. The Gates Foundation funds research and field work that has saved countless lives from malaria, polio, tuberculosis and HIV.

A Guardian investigation in March found the Gates foundation’s trust held $1.4bn worth of investments in some of the world’s biggest carbon polluters.

“It is untenable to separate our monetary investments from the vision of the world we want to see,” the letter continues. “The Gates foundation can and should use its power, money and privilege to pave the way for a more enlightened global economy.”

Analysis has shown a Gates foundation divestment would not only have sent a powerful social message about the future economy it desires, it would have saved £1.9bn as shares in coal and oil have tumbled.

Divestment has now become a mainstream choice for many fund managers. The South Yorkshire council’s £5.5bn fund announced on Monday that it had stopped buying shares in coal and tar sands oil companies, a move that relegates the two most carbon-intensive fossil fuels. This was followed on Tuesday by an announcement by the world’s biggest insurer Allianz that it would dump £2.8bn worth of coal shares. Insurer CNP Assurances and investment group Caisse des Dépôts later joined Allianz.

The London School of Economics will decide on Wednesday night whether to divest its endowment from fossil fuels. A recent report found that if the school had dropped its shares three years ago it would now be £3m better off.

The Cambridge signatories acknowledged Bill Gates’ personal concern for climate change, which this year led the world’s richest man to commit $2bn of his personal wealth to renewable energy and climate research.

But they questioned his stance against divestment, to which he has held firm despite a major campaign run by this newspaper and signed by 235,000 people calling on his charity to drop its investments. In October, Gates criticised people who thought “divestment alone is a solution” as idealistic.

“Whilst I fully agree with Gates that divestment is not the whole solution, pulling resources out of the fossil fuel industries is one important step along the way,” said Ragnhild Freng Dale, a PhD candidate at the Scott Polar Institute. “If the Gates foundation committed to divest, it would not only send a powerful signal to the rest of the world, but also free up money that is needed to invest in research and development of future energy solutions.”

The Gates Cambridge Scholarship Trust awards 90 academic grants each year to students who demonstrate a “commitment to improving the lives of others”. The programme was set up with a $210m endowment from the Gates foundation and remains one of the world’s largest university scholarships programmes. Both Bill and Melinda Gates are patrons and they appoint two members of the board.

The scholarship holders who signed the letter come from a broad swath of academic disciplines; including clean energy, social sciences, French thought, music and English literature.

The Gates Divest organisation has been holding daily protests outside the foundation offices in the city of Seattle. Their call has so far been endorsed by 62 local non-profit organisations, 70 faith leaders and 10 out of 18 city council election candidates.

“Bill and Melinda Gates are viewed as deserved moral leaders. But that’s why their divestment is so important - because where leaders go, others follow,” said Alec Connon, campaign organiser.

The Gates foundation does not comment on divestment. The Gates Cambridge Trust did not respond to an email from the Guardian.