The University of British Columbia (UBC) board of governors announced Monday it will create a $10 million sustainability fund instead of dumping the school’s fossil fuel assets, prompting divestment campaigners to bemoan the decision.
UBC plans on allocating $10 million to a Sustainable Future Fund that will invest in low-carbon emission and high environmental, social and governance equity funds, as well as seek to lower carbon emissions and reduce water, air and soil pollution.
Ten percent of the University’s $1.2 billion endowment is in oil, gas and coal company assets.
The board concluded that setting up the fund, using ESG private equity funds, and engagement through the Canadian Coalition for Good Governance would pressure companies to change their fossil fuel-burning ways more than divesting, while at the same time allow the school to function.
“The Sustainable Future Fund and the application of ESG principles in the main endowment will shift investments towards companies that are environmentally and socially responsible in a structured, thoughtful way,” Greg Peet, chair of the board’s finance committee, said in a statement about the school’s decision.
“It’s an innovative solution, tempered by fiscal prudence, that ensures our endowment is preserved for generations to compete,” Peet added.
The school’s finance committee recommended UBC create the fund earlier this month after the school voted no on divesting the endowment of fossil fuel investments.
“The committee made the recommendation to create the sustainable future fund after careful consideration of a student and faculty proposal for divestment from fossil fuel companies,” Philip Steenkamp, UBC’s vice-president of external relations, said in a Feb. 3 statement.
The statement adds: “As a result of a detailed review and third-party analysis, the committee concluded that the proposal would not necessarily meet the objectives of addressing climate change or influencing corporate behaviour. They also concluded that at this time, it would not be consistent with the board’s fiduciary obligation to endowment donors.”
The divestment crowd was not happy with the decision.
“We’re talking about my generation’s future on this planet,” Roxanne Hasior, UBC student and Divest UBC campaigner, told reporters Feb. 3.
“Divestment is not a difficult decision,” Hasior added. “Every major constituency across the university has shown its support. Does UBC really plan to ignore its own students, faculty and staff, in order to do the wrong thing?”
“The campaign is not going to stop until they divest,” Alex Hemingway, a UBC PhD student and divestment coordinator, told reporters.
Divestment campaigners took to Twitter Monday to voice their displeasure with UBC’s decision to add a sustainability fund instead of divesting oil assets. They protested after the vote, admonishing the board of governors for “failing” them.
Three voted against the motion. Students stand in response "you are failing us!" #UBCBoG #divestubc
— shane woodford (@WoodfordCKNW980) February 15, 2016
Time to see if the #UBCBoG will act on climate @ubcc350 #divestubc pic.twitter.com/UkcudB1ZEL
— stephglanz (@stephglanz) February 15, 2016
UBC’s decision to forgo jettisoning its fossil fuel asserts comes two weeks after Cornell University’s board of trustees made a similar decree, stating it refused to divest its oil assets.
The board decided Cornell would divest from companies and industries only “when the company’s actions or inactions are morally reprehensible,” which include “genocide, human trafficking, slavery or systemic cruelty to children, including violation of child labor laws.”
“UBC’s core mission is teaching and research, and as a university with a reputation of being at the forefront of innovation, we will continue to collaborate with industry and government on effective solutions to climate change,” UBC Interim President Martha Piper said Monday.
“This new fund further demonstrates UBC’s commitment to sustainability, and equally important, it also gives our donors flexibility and options when choosing how to donate to the university,” she added.
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