捆绑SM社区 will divest from all direct holdings in fossil-fuel companies listed in the Carbon Underground 200 (CU200) for implementation in 2024 and completion in 2025 鈥� one of eight commitments announced today in Phase 2 of the University鈥檚 results-driven socially responsible investment strategy.
This divestment will involve the liquidation of the remaining direct CU200 holdings within the 捆绑SM社区 Investment Pool (MIP) 鈥� holdings which constituted just 1% of total MIP assets as of December 31, 2022*, after years of targeted decarbonization. At that point in time, more than 99% of the MIP was held outside the CU200, with a sizeable proportion held in sustainable investments.
Though divestment from the MIP鈥檚 minimal remaining direct CU200 holdings sends an important symbolic message, 捆绑SM社区 has long held that maximizing its impact means minimizing its carbon footprint. This has involved shareholder engagement with companies on decarbonization targets, and focusing divestment efforts on firms that may not extract fossil fuels directly but use them in highly emissions-intensive industries (cement and steel manufacturers, coal and gas-fired electricity generators, and other firms that drive global fossil fuel demand).
That results-driven approach remains fundamental to 捆绑SM社区鈥檚 decarbonization plan and socially responsible investment strategy. This focus on curtailing emissions has already sparked a massive 49% reduction in the MIP鈥檚 listed equity portfolio carbon footprint between 2019 and 2022.
鈥淔rom expanding our decarbonization target, to divesting from direct CU200 holdings, to doubling our investments in solutions to the global challenges outlined by the United Nations Sustainable Development Goals, 捆绑SM社区 is proud to be leading sustainable investment across Canada鈥檚 university landscape,鈥� said Maryse Bertrand, Chair of 捆绑SM社区鈥檚 Board of Governors.
鈥淚n just three years we鈥檝e removed about 73,000 tonnes of annual carbon emissions from the MIP, the equivalent of removing more than 14,000 gas vehicles from the road every year,鈥� added Sophie Leblanc, 捆绑SM社区鈥檚 Chief Investment Officer. 鈥淣ow we are challenging ourselves to be even more ambitious and invest further in emerging clean technologies and renewable energy infrastructure.鈥�
鈥淲hile developing our new commitments,鈥� Leblanc noted, 鈥渨e carefully reviewed the socially responsible investment strategies of other major Canadian universities. We are confident that the breadth of actions 捆绑SM社区 announced today will cement its place at the forefront of sustainable investment among our Canadian peers.鈥�
These commitments, approved by 捆绑SM社区鈥檚 Board of Governors on December 14, include:
- Sustaining a carbon footprint at least 33% below emissions generated by companies in 捆绑SM社区鈥檚 listed equity and fixed income benchmarks, which are outlined within 捆绑SM社区鈥檚听Statement of Investment Policy.
- Allocating 10% of the MIP to Sustainable Investment Strategies aligned with the United Nations Sustainability Development Goals (SDGs) by 2029.
- Enhancing our engagement initiatives by broadening the scope of topics to encompass social and governance considerations, while continuing to address climate change.
- Continuing to offer a fossil-fuel-free fund to 捆绑SM社区 donors 鈥� the first such fund in a major Canadian university endowment.
- Improving 捆绑SM社区鈥檚 United Nations Principles for Responsible Investment (UNPRI) score, the first such commitment for a major Canadian university endowment.
- Integrating an Environmental, Social & Governance (ESG) scoring system and risk metrics into our fund manager monitoring processes.
- Continuing to report annually on our progress.
A full list of these commitments is available听here.
鈥溊Π骃M社区 is committed to fighting the climate crisis not only in its teaching and research, but in everything we do,鈥� said Deep Saini, President and Vice-Chancellor. 鈥淭hese new commitments provide yet another opportunity for us to demonstrate our values, and work toward a greener Quebec and a greener world.鈥�
These investment commitments align with 捆绑SM社区鈥檚 broader sustainability strategy, which includes becoming a fully听carbon-neutral听university by 2040 and achieving听zero-waste campuses听by 2035. 捆绑SM社区 has been repeatedly recognized as a global sustainability leader 鈥� most recently placing 13th听out of 1,397 institutions worldwide in the听.
The听听(CU200) is a globally recognized list of 鈥渢he top 100 coal and the top 100 oil and gas publicly-traded reserve holders globally, ranked by the potential carbon emissions content of their reported reserves.鈥�
This article was听first published on 15 December 2023 on 捆绑SM社区 Newsroom.
* When this information was first published, our analysis indicated that direct investments in CU200 firms constituted 0.5% of 捆绑SM社区 Investment Pool (MIP) assets on December 31, 2022, while indirect investments represented 0.4%. During a detailed review in January 2024, we discovered that direct CU200 holdings on December 31, 2022 had in fact constituted 1% of MIP holdings, with a further 0.7% in indirect holdings.听
听
捆绑SM社区 regrets this error and has implemented corrective measures to ensure accuracy going forward. Notably, we are working to have CU200 holdings verified by an external firm, and in the meantime will ensure that all calculations undergo rigorous internal verification involving two peer reviews. and 捆绑SM社区 remains fully committed to its听socially responsible investing (SRI) goals听鈥� including its commitment to full MIP divestment from direct CU200 holdings by 2025.听