Following calls for fossil fuel divestment, the University of Sydney has committed to a different approach and will reduce the carbon footprint of its investments by 20%. The university claims that this approach is a more “effective and meaningful” way to address climate change.
Over the next three years the university will ask its listed equity fund managers to build a portfolio of investments that enables the university to reduce its carbon footprint by 20%, relative to the footprint of its current listed equity composite benchmark. Progress will be reported annually.
The plan follows a review into responsible investment and the current global views and actions surrounding climate change. The review considered a number of options, including whether or not to divest from the fossil fuel industry entirely and raised “complexities” in reducing the portfolio’s carbon footprint, including whether divesting from all companies with an interest in fossil fuels could result in divestment from companies that are also committed to building renewable power sources.
The university describes divestment as a “blunt instrument” that “delivers sub-optimal outcomes for all parties concerned”. It notes that divestment would fail to cut out heavy emitting companies that are not in the fossil fuel industry, whilst reducing the carbon footprint of investments “signals to all sectors that we expect them to do their bit to reduce carbon emissions”.
The university’s vice-principle, Sara Watts said, “The new strategy balances the university’s obligation to manage funds wisely on behalf of our students, staff, donors and alumni with the desire to address climate change and protect Australia’s heritage.
“This strategy will give the university a legitimate voice in the conversation on how organisation can best address climate change risks. The university’s strategy signals to the entire market that investors are concerned about the impact of climate change and expect the contributing sectors to respond with plans to reduce their emissions.”
The decision from the University of Sydney follows a study that cautioned policymakers that the vast majority of fossil fuels must remain in the ground and unburnt if the world is to avoid dangerous levels of climate change. The researchers also warned the fossil fuel investments are becoming “increasingly risky”.
A growing number of institutions, from universities to religious organisation, are committing to fossil fuel divestment as the movement gathers momentum. Last week health organisations faced calls to drop fossil fuel investments, with a report stating such holdings are “incompatible” with the moral and professional responsibilities of the sector.
Photo: squeaks2569 via Flickr
Like our Facebook Page
Is It Possible to Work in Tech Without Harming the Planet?
Zero Waste Living and Its Importance
Investing in a Sustainable Environmental Future for Northern Virginia
Prominent Trends in Seafood Sustainability in 2022
Sustainable Landscaping Tips for Your Property
Can PEMF Help To Improve Plant Growth for Eco-Friendly Gardeners
How the U.S. Government is Promoting Green Energy in the Country
12 Essential Things for Buying Your First Home
Harnessing Sustainability with User-Centric Technology Innovation
Making Your Dream of Having an Eco-Friendly Garden Come True
7 Eco-Friendly Plant-Based Alternatives for Everyday Products
Top 5 Benefits of Eco-Friendly Cars
Why Eco-Friendly Homes Should Have Outdoor Bathrooms
Merits of Sustainability Reporting: What Every Manager Must Know
Low Emission and Clean Air Zones: What You Need To Know
CEO Brian Ladin Explains How The Shipping Industry Is Going Green
A Guide to Eco-Friendly Landscaping
Is the Hyundai i30 A Valuable Investment?
Is Couchsurfing a Good Option for Eco-Friendly Traveling?
How To Set Up A Sustainable Smart Home
- Features11 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy12 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features11 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Features10 months ago
5 Compelling Reasons to Hire an Eco-Friendly Contractor