Foundation creates fossil-fuel-free fund

The University of Victoria Foundation trustees decided at their Feb. 23 meeting to establish a pilot fossil-fuel-free fund that will not invest in companies that have proven and probable thermal coal, oil or natural gas reserves.  In doing so, the foundation also reaffirmed its decision not to divest or sell fossil-fuel investments related to oil, gas and coal in the main investment fund.

Over the last several years, the foundation has adopted responsible investing practices that consider environmental, social and governance (ESG) issues, including signing the United Nations’ Principles for Responsible Investment. The foundation’s investment managers are now also required to report annually how ESG factors are incorporated into the investment decision-making process.

The foundation, which is a separate entity from the university, manages the $375-million endowment fund that disburses money for student scholarships, bursaries, awards and also helps fund university projects and programs including the Pacific Institute for Climate Solutions, a province-wide hub for internationally leading climate change research.

UVic is committing $25,000 to seed the new fund, which is the amount required to establish an endowment. This will allow smaller donations to be made by individuals or organizations.

The distribution of the endowment will support Campus Sustainability Fund initiatives on campus.  The sustainability fund provides one-time allocations, which focus on energy or water saving or a sustainability awareness or learning opportunity. The fund also provides seed money for projects relating to the Sustainability Action Plan.

Addressing the challenge of climate change is a pressing societal issue that has engaged researchers, campus administrators, faculty members, students and staff at UVic for many years.

Besides being home to PICS and the sustainability-focused Institute for Integrated Energy Systems at the University of Victoria (IESVic), UVic’s School of Earth and Ocean Sciences, School of Environmental Studies and Department of Geography have a strong educational and research focus on climate science and the biological, environmental and social consequences of climate change.

In its campus operations, UVic has reduced its own carbon footprint and the Sustainability Action Plan has concrete goals and strategies that have been internationally recognized for their impacts.

At its Jan. 26 meeting, UVic’s Board of Governors discussed climate change and responsible investing in response to letters from a group of faculty members and the University of Victoria Students’ Society asking that the university divest from investments in fossil-fuel companies. About 40 students were in attendance at the meeting.

Board Chair Erich Mohr thanked the students for attending and showing their commitment. “We share society’s concern about climate change. Through research, academic programs and campus operations, UVic is contributing to solutions and reducing its own carbon footprint,” Mohr said.

He said the board had thoroughly reviewed submissions and discussed on a number of occasions—including for the January board meeting—requests for divestment. The board respects the statutory independence of the foundation board and its evolving approach to responsible investment. He also explained the foundation’s statutory independence as being separate from the university with specific responsibilities.

“We acknowledge that efforts need to continue on a number of fronts and we will strive to stay informed and contribute to addressing this multi-faceted challenge in keeping with our academic mission of excellence in education and research,” said Mohr.