Divestment policy adopted by trust

Annabeth Cohen
Annabeth Cohen
The University of Otago foundation trust this week decided on fossil fuel divestment, but it may not let go of any of its investments as a result, activists say.

The trust's decision to amend its investment policy came after more than a year of campaigning by 24 senior academics who first contacted the university by letter to advocate fossil fuel divestment in June 2014.

Student group Otago Uni Divests has also been advocating divestment since it was founded earlier this year, and has collected more than 1000 signatures on a petition asking the university to divest.

Group spokeswoman Annabeth Cohen said the decision was ''a step in the right direction''.

The trust's decision made it the latest in a string of funds, including the Dunedin City Council's Waipori fund and Victoria University of Wellington's fund, that have decided to divest from the fossil fuel industry due to its role in advancing climate change.

University centre for sustainability director Dr Janet Stephenson, one of the 24 senior academics advocating divestment, said the changes to the trust's investment policy were ''carefully worded''.

They only prohibited investment in companies directly involved in exploration for or extraction of fossil fuels, she said.

And Ms Cohen said the wording meant that, although the trust had about $2.75 million (1.5% of its total investments) in ''oil, gas, and consumables'', it would not have to move any money around after this week's decision.

The academics and Otago Uni Divests had also asked the university council to amend its ethical investment policy to prohibit fossil fuel investments, but the university has declined to vote on the matter thus far.

The university itself does not hold any fossil fuel investments, but its ethical investment policy does not, at present, prohibit it from doing so.

Dr Stephenson said the trust's decision was ''not the same as the university as a whole committing to divestment as an important moral and ethical decision''.

''There's another decision to be made at a council level.''

Still, she said, ''the amendment of the policy is an incredibly important step in this direction''.

A university spokeswoman said the council ''had not considered any of the questions asked'' about divestment and its ethical investment policy.

The foundation trust did not respond to requests for comment by press time.

carla.green@odt.co.nz

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