Harvard Management Company Updates Climate Disclosure Format
The firm replaces annual fossil fuel investment percentages with long-term climate scenario modeling to assess risk.
Updated on Oct. 16, 2026 in Environmental
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Harvard Management Company released a 2026 climate progress update that shifts from reporting specific fossil fuel investment percentages to providing forward-looking analysis. The update follows a year without a report in 2025 and maintains the firm's ongoing net-zero goals.
Why it matters
The change in disclosure strategy signals a move away from static portfolio reporting toward scenario-based risk modeling for the endowment. This approach attempts to account for how macro-level climate trends influence long-term investment performance in Boston and beyond.
The firm now estimates that High Warming scenarios could reduce cumulative investment performance by 45 percent over 15 years, while a delayed net-zero transition carries a projected 14 percent negative impact over five years.
The players
Harvard Management Company
The Boston-based investment firm responsible for managing Harvard University's endowment, which includes energy-focused pools.
Ortec Finance
A financial consulting firm that specializes in investment risk modeling and climate scenario analysis for institutional clients.
Rho Impact
A consultancy firm focused on evaluating emissions reductions and climate impact potential.
The details
Harvard Management Company utilizes climate scenario modeling developed in collaboration with Ortec Finance to assess long-term risks. These models contrast a 1.6 degrees Celsius Net Zero trajectory against a 3.8 degrees Celsius High Warming scenario to forecast financial outcomes. For operational emissions, the firm identifies Scope 3 emissions—indirect greenhouse gas emissions occurring throughout the value chain—as accounting for 90 percent of its total footprint. Purchased goods and services make up the majority of this figure at 52.8 percent.
Timeline
2020: Harvard committed to net-zero endowment emissions by 2050.
2021: The firm pledged to let legacy fossil fuel investments run off.
Fiscal year 2022: HMC began maintaining carbon-neutral operations.
2025: Harvard Management Company did not publish a climate report.
October 14, 2026: The 2026 climate progress update was released.
The Tech Race
This disclosure strategy marks a shift in how institutional investors monitor climate-related financial risk relative to their 2050 net-zero commitments. By moving to scenario-based modeling, the firm is attempting to align its portfolio monitoring with evolving standards for long-term climate risk assessment.
The change affects how stakeholders evaluate the university's progress toward its 2050 net-zero goal by altering the availability of historical portfolio data. Observers looking for year-over-year shifts in specific asset classes will need to interpret the new forward-looking analysis instead.
The takeaway
The move to scenario modeling highlights a prioritization of long-term risk projection over static asset disclosure. Watch for future updates from the firm to see if the new metrics offer more clarity on the endowment's climate performance than the replaced percentage disclosures.
Further reading
For broader trends in institutional sustainability reporting, visit our Environmental section.
Source note: This article includes information reported by The Harvard Crimson.
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