The University of Guelph’s Board of Governors voted yesterday in support of a motion to divest all fossil fuel investments by 2025, yet some questions remain.
While the vote to divest is undoubtedly a win for all those in favour of transitioning to more environmentally conscious and sustainable investments — and especially for the student activists, including those from Fossil Free Guelph, who have pushed for divestment since 2014 — what the divestment decision means is still not entirely clear.
“[To divest] has not been a hasty decision,” said Nancy Brown Andison, chair of the board’s finance committee, during the board meeting on April 22. “It’s one that has gone about in a very methodical process in terms of a lot of detailed analysis and research and review.”
The board had been presented with a motion calling for a full divestment in five years. However, during the board meeting, an amendment was added to the motion that grants an exemption for investments in fossil fuel companies that align with the University’s goal of reducing carbon emissions.
The addition of this amendment complicates the move towards divestment by introducing some uncertainty.
A copy of the original and amended motion is included below.
“[T]his is not yet a full victory, and we are celebrating cautiously,” reads a statement from Fossil Free Guelph, posted to the group’s Facebook page. “There is more work to be done. Before the motion was passed, amendments were made that could create a loophole for the finance committee to still consider certain investments in the fossil fuel sector based on criteria we do not yet fully understand. In other words, the University has committed to full divestment but with an added clause that could undermine the meaningfulness and accountability of that commitment.”
Fossil Free Guelph has stated from the beginning of their divestment campaign that it will accept nothing less than full divestment — something many students support.
“We will hold the University of Guelph accountable for the commitment made today, and if that commitment turns out to be anything less than full divestment, we will continue to push them to do better.”
The Board of Governors is asked to,
RESOLVE, that the Board of Governors approve that the University of Guelph commit to divestment from the ownership of fossil fuels within the Endowment Portfolio Investment Fund over a five-year period beginning April, 2020; and,
FURTHER RESOLVE, that ownership of fossil fuels is defined as the ownership of companies which hold fossil fuel reserves; and,
FURTHER RESOLVE, that the role of the Investment Subcommittee is acknowledged as critical in managing this transition and the Investment Subcommittee will be afforded all reasonable flexibility in managing the transition through the five-year period; and,
FURTHER RESOLVE, that the Board receive annual reporting on the implementation of the above.
Whereas, the University has an ongoing commitment to long-term carbon reduction targets and to its environmental social governance guidelines, which are embedded in the Board’s statement of investment beliefs that guide investment policies and practices; be it,
RESOLVED, that the Board of Governors approve that the University of Guelph commit to divestment from the ownership of fossil fuels within the Endowment Portfolio Investment Fund over a five-year period beginning April, 2020; and,
FURTHER RESOLVED, that ownership of fossil fuels is defined as the ownership of companies which hold fossil fuel reserves; and,
FURTHER RESOLVED, that the role of the Investment Subcommittee is acknowledged as critical in managing this transition and the Investment Subcommittee will be afforded all reasonable flexibility in managing the transition through the five-year period; and,
FURTHER RESOLVED, that an exception process be provided whereby specific investments not in compliance with the above may be considered, provided that the investment is specifically in support of the transition to a low carbon economy and otherwise consistent with the University’s investment beliefs; and,
FURTHER RESOLVED, that the Board receive annual reporting on the implementation of the above.
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