I followed up on the matter I'd raised at the November 2014 meeting (see my report of that meeting) regarding oversight of UQ's investment portfolio with respect to ethical investment decisions and the risk of 'stranded' investments. In November, Senate was told that the portfolio is managed by two investment houses who are signed up to the UN policy on responsible investment, and that petitions from staff and students about divesting from fossil fuel holdings would be considered by Senate's Finance Committee.
It was reported that Finance Committee had considered the petitions but that it had decided that it was "too hard to tell where fossil fuel investments start and end" - seemingly an argument that many industries rely on fossil fuels to some extent or another.
UQ's fund managers have been asked to find a 'socially-responsible' investment vehicle that donors to the University could nominate their funds to go into.
Ahead of the meeting, a group of students from 'Fossil Free UQ' mounted a picket outside the Chancellery to follow-up their recent sit-in of Chancellery offices, as part of their campaign to convince the University of the merits of divesting from fossil fuel investments.
One student, the UQU Environment Officer, was admitted as an observer to that part of the meeting where Senators were briefed by the Chancellor on negotiations with the campaigners to-date and a commitment was given that a paper by Fossil Free UQ and a management response would be considered at the next meeting of Senate.
At the end of the Senate meeting, a one-page statement by Fossil Free UQ was distributed to Senators. You can read it here.
Four student representatives of the Fossil Free UQ activist group were admitted to the Senate Room to make a 10 minute presentation on why UQ should divest its fossil fuel investments. A supporting position paper from the group had been circulated with the agenda papers, along with a management paper. The latter did not make an explicit recommendation, and although somewhat balanced, highlighted a number of arguments against divestment.
After the students left, Senate had quite a lengthy discussion of the matter with participation by a wide range of members. As a percentage of UQ's total investment holdings, fossil fuel holdings are small, but most speakers were focussed on the 'risks' of divestment, such as criticism from the corporate sector or a reduction in support from the companies involved. It was clear there was not a majority appetite for divestment, but there was a willingness to revisit the principles underpinning UQ's investments. Presumably something about this will come to a future Senate meeting.
