The University of Texas System houses the second largest endowment in the country. As a result, UT has the power to create massive change. However, UT’s investments into weapons manufacturing companies have raised ethical concerns among students and faculty.
According to a report published by Women for Weapons Trade Transparency, since 2019, The University of Texas/Texas A&M Investment Management Company, which manages UT’s endowment, has invested millions of dollars into weapons manufacturing companies. Although UT is a corporation, above all, it’s a university. As an academic institution, UT should not be contributing to an industry that profits off of violence.
Janet Abou Elias, a UT alum and founding member of Women for Weapons Trade Transparency, shared concerns for divestment. Elias was an author of a Student Government joint resolution for divestment during her time at UT.
“When (the organization) set out to start UTIMCO divest, we were very concerned that there were a lot of investments going through the University of Texas that were not following the proper human rights vetting and sustainable investment practices that are pretty common among university endowments of the same size,” Elias said.
Elias referred to a report published in 2023 by Amnesty International, which stated that the UT Systems endowment has failed to provide any commitment to responsible investments and human rights due diligence.
“We’ve been telling (UTIMCO) this the whole time,” Elias said. “They tell us what starts here changes the world, but is it changing the world for good or for bad? We want to make sure that it’s for good.”
Cherrill Spencer, co-chair of the Disarm/Wars Committee of the Women’s International League for Peace and Freedom, referred to a report published in 2023 in which 109 organizations agreed to divest from nuclear weapons manufacturing companies.
“(Organizations) said no, we’re not going to invest in companies that are violating human rights.” Spencer said. “This concept of not investing in certain things is not new.”
Elias’ organization met with UTIMCO in 2021 to present their arguments for divestment. UTIMCO explained that they have a “fiduciary duty to the UT Board of Regents,” in which they “cannot invest based on social and political reasons,” Elias said.
“It’s just verbiage to avoid having to set these processes and have some accountability for the way the money is being managed,” Elias said in response to UTIMCO’s statements.
Olga Tumanova, junior environmental science student and director of Students Fighting Climate Change, emphasizes this sentiment.
“All they’re thinking about is short term economic gain,” Tumanova said. “And they can stand by that and say that this is an objective way of moving forward. But the thing is, these decisions are never objective. And it’s impossible to keep social concerns away from it.”
UT’s investments impact all students and staff at the University, which is home to a diverse student body with a diverse set of beliefs.
“We want the money that we’re paying our institutions to be going into our well being,” Tumanova said. “Ultimately, when we’re failing to consider these sorts of implications of where our money’s going, we’re not representing the well being of the students.”
Not only are UTIMCO’s investments harmful to the student body, they are also less profitable than other alternatives. According to an analysis done by Women for Weapons Trade Transparency, these investments are worth nearly $35 million, a significant decrease from its $63 million value in 2021.
“With weapons manufacturing, (investing) just doesn’t make sense anymore,” Tumanova said. “Especially when you’re not making as much profit as you’re anticipating.”
Spencer elaborated on Tumanova’s statement.
“It’s not like there’s a dearth of things to invest in,” Spencer said. “There’s thousands of companies out there doing good work.”
The University of Texas Systems was not available for comment.
As an academic institution, UT has a primary responsibility to support its students, not to generate profit. It cannot continue to support industries that conflict with its academic mission. Instead, UTIMCO must prioritize the promotion of research and learning, and divest from the weapons industry.
Saunders is a journalism and government freshman from Wheaton, Illinois.
