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NEPC: University of Maine System cuts fossil‑fuel exposure to near‑zero; divestment to continue toward 2030 target
Summary
NEPC reported the system’s total fossil‑fuel exposure declined from roughly $13.2M in 2016 to about $600,000 as of September 2025, with nearly all equity and fixed‑income exposure eliminated by December; the consultant recommended completing divestment of active commingled funds by the board’s 2030 target while maintaining fiduciary standards.
A consultant presentation to the University of Maine System Board of Trustees showed a steep decline in the system’s fossil‑fuel holdings as trustees received the annual investment update. Kelly Rean of NEPC told the board that exposure across the system’s three portfolios fell from more than $13 million in 2016 to roughly $600,000 as of September 2025, and was estimated at roughly $89,000 by the end of December after managers were replaced.
NEPC said the system eliminated fossil‑fuel exposure in equity portfolios and had largely removed fixed‑income exposure as well, leaving a single hedge fund manager with residual exposure at the time of the September snapshot. Rean recommended the system continue to pursue its 2030 divestment goal by replacing the last manager exposures with fossil‑free mandates while preserving portfolio return objectives and fiduciary responsibility.
Trustees praised the progress and asked for continued diligence to ensure that portfolio changes preserved diversified returns and met legal obligations. Trustee Emily Emmes thanked NEPC for tracking progress since the board’s divestment resolution in 2022, and NEPC emphasized that any future changes will be evaluated against the portfolios’ return goals and risk profiles.
What happens next: NEPC and the system investment committee will continue to evaluate managers to remove the remaining exposure and present options for the last manager replacement; trustees will receive ongoing investment updates.
