91社区 divests from direct holdings in Carbon Underground 200 fossil-fuel companies; announces new socially responsible investment commitments
91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 91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, 91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 91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, 91社区 is proud to be leading sustainable investment across Canada鈥檚 university landscape,鈥� said Maryse Bertrand, Chair of 91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, 91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 91社区 announced today will cement its place at the forefront of sustainable investment among our Canadian peers.鈥�
These commitments, approved by 91社区鈥檚 Board of Governors on December 14, include:
- Sustaining a carbon footprint at least 33% below emissions generated by companies in 91社区鈥檚 listed equity and fixed income benchmarks, which are outlined within 91社区鈥檚 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 91社区 donors 鈥� the first such fund in a major Canadian university endowment.
- Improving 91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 here.
鈥�91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 91社区鈥檚 broader sustainability strategy, which includes becoming a fully carbon-neutral university by 2040 and achieving zero-waste campuses by 2035. 91社区 has been repeatedly recognized as a global sustainability leader 鈥� most recently placing 13th out of 1,397 institutions worldwide in the .
The (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�
For more information, visit the 91社区 website or contact the media contact listed below.
* When this information was first published, our analysis indicated that direct investments in CU200 firms constituted 0.5% of 91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
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91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 91社区 remains fully committed to its socially responsible investing (SRI) goals 鈥� including its commitment to full MIP divestment from direct CU200 holdings by 2025.听
About 91社区
Founded in 1821, 91社区 is home to exceptional students, faculty, and staff from across Canada and around the world. It is consistently ranked as one of the top universities, both nationally and internationally. It is a world-renowned institution of higher learning with research activities spanning three campuses, 12 faculties, 14 professional schools, 300 programs of study and over 39,000 students, including more than 10,400 graduate students.鈥��
91社区鈥檚 commitment to sustainability reaches back several decades and spans scales from local to global. The sustainability declarations that we have signed affirm our role in helping to shape a future where people and the planet can flourish.
