Student associations and professors at the Université de Montréal are urging it to put an end to its investments in the fossil fuel industry, which amount to $92.8 million. Management admits that it does not have a policy of divestment from the sector, but it argues that it has set climate objectives for the next few years.
“The University boasts of its sustainable development policies and its science programs, while investing in fossil fuels”, raises Quentin Lehmann, student and spokesperson for the divestment committee, which held a mobilization event on Wednesday in favor of their campaign for an end to investments in the oil and gas sector. The action took place under the surveillance of the police and the security services of the University. A petition, which had just over 4,000 names on Wednesday, was also posted online.
Same story on the side of the General Union of Professors of the University of Montreal, which adopted in December a resolution in favor of divestment. “The Université de Montréal is a research institution, particularly in climate science. We must therefore demonstrate intellectual honesty with regard to what we know about climate change,” says Sébastien Rioux, member of the union office.
Oil sands
“Currently, we do not have a policy of divestment from the fossil fuel sector for the endowment fund, but it is a file which remains under study on an ongoing basis”, replies the University of Montreal, by email.
Questioned about the criticisms coming from student and professor mobilization, she specifies that there are investments in the fossil fuel industry in her endowment fund, which is used to support research projects, scholarship programs for students and university projects.
According to the data provided, the amount is $14.1 million, or 3.77% of the fund. The management committee’s 2020-2021 annual report reveals the presence, as of April 30, 2021, of investments in the oil companies Suncor and Canadian Natural Resources. These companies active in the oil sands sector are among the “top ten public securities” of Canadian equities. There is also the oil company Shell.
The educational institution adds that it already applies a “responsible investment policy” which includes a target for reducing the “carbon intensity” of its investments. The target was set at 20% reduction by 2025, then 35% by 2030.
As for the Université de Montréal pension plan, which is administered by a “retirement committee”, it has $78.7 million in the oil and gas sector, or 1.63% of the total investments.
It has the same “carbon intensity” reduction target as the endowment fund, says Adrian Burke, who has been a member of the committee for six years. If he cannot reveal details on the management, because of confidentiality clauses, he estimates that “the transition is very slow” for the management of the approximately five billion dollars of investments.
Other universities in Quebec have embarked on a process of phasing out fossil fuels, including UQAM and Concordia. Université Laval made a divestment commitment in 2017.