University of Toronto rejects calls to dump fossil fuel holdings, says divesting has limited impact

TORONTO — The University of Toronto has rejected recommendations to eliminate its holdings within the fossil fuel industry, but says it will consider environmental, social, and governance factors in making investment decisions.

In a newly released report, university president Meric Gertler says divesting from fossil fuel companies might have limited impact because “such firms only take into account one-quarter of Canada’s greenhouse gas emissions.”

Instead, he says, the university will take a far more comprehensive approach to managing its direct and indirect investments by taking a look at environmental, social and governance risks, including global warming.

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Universities across Canada have been weighing whether to dump their holdings in fossil fuel companies.

Concordia University in Montreal became the first Canadian university to adopt an incomplete divestment policy in December 2014, though that measure only pertains to a $5-million fund — a fraction of the school’s $130-million endowment.

The University of Calgary, McGill University in Montreal and Dalhousie University in Halifax have decided against divestment, as did the University of Bc, which instead promised to create a low-carbon investment fund.

The Canadian Press