The University of Guelph has completed its divestment from fossil fuel companies in its endowment portfolio, fulfilling a five-year, fossil-free divestment goal that began in April 2020.
Meeting the target date of early 2025, the Board of Governors has divested all of U of G's endowment assets from companies that hold fossil fuel reserves.
The divestment aligns with the University's ongoing commitment to long-term carbon reduction targets and to its environmental, social and governance (ESG) guidelines, which are embedded in its investment policies and practices. As a signatory to the United Nations Principles for Responsible Investment, U of G continues to set net-zero targets in line with the institution's overall strategic plan, the Climate Charter and the Paris Agreement.
Key to this milestone is a reduction in weighted average carbon intensity (WACI), a widely used metric that measures the carbon emissions associated with an investment portfolio. The University has achieved a 74 per cent reduction in emissions since it began tracking WACI in 2018.
It has also reduced the production of greenhouse gases below 1990 levels and will further reduce these emissions by 37 per cent by 2030 and 80 per cent by 2050.
"We are committed to managing the University's investments in a way that both safeguards our financial future and upholds our institutional commitment to building a sustainable tomorrow," says Sharmilla Rasheed, vice-president, finance and operations. "Our fossil fuel divestment reflects a considered decision that advances our pursuit of global sustainability goals while maintaining a strong, diversified portfolio."
About U of G's fossil fuel divestment
In April 2020, U of G committed to divest from the ownership of fossil fuels within its endowment portfolio investment fund, becoming one of the first universities in Canada to do so.
The decision was a culmination of a multi-year plan to lessen the environmental impact of the University's endowment investments, which are made up of restricted accounts used to fund student assistance such as scholarships and bursaries. These assets also support research, strategic initiatives, equipment, library acquisitions and endowed faculty positions.
Following recommendations from students, the University's administration, the Board's finance committee and the student-led advocacy group Fossil Free Guelph, U of G conducted an extensive analysis on fossil fuel divestment during this time, ultimately finding this shift would not impact performance if done prudently and over several years. The Board also allowed an exception process for specific investments that support the transition to a low-carbon economy.
The University has now fully implemented its fossil fuel divestment according to its initially proposed timeline and continues to track carbon and ESG metrics. The Board of Governors will also monitor new trends and evolving developments in responsible investment in pursuit of climate goals.
