(Bloomberg) -- Canada’s largest university will divest from fossil fuel companies in its C$4 billion ($3.2 billion) endowment fund by the end of the decade and aim to get its portfolio to net zero greenhouse gas emissions by 2050.
Most Read from Bloomberg
- A Deep Dive Into Squid Game's World of Inequality
- Meet Six People Fighting Water Scarcity Across the Globe
- Hamburg Is at the Heart of Germany’s Growing Dilemma Over China
“It is our belief that this will both accelerate the transition to a low-carbon economy and inspire other investors to do the same,” Meric Gertler, president of the University of Toronto, said Wednesday in a written statement. “We hope it will also encourage government actors at home and abroad to intensify their efforts to tackle the challenge of climate change.”© Bloomberg The University Of Toronto As Ontario Lays Out Plan to Restart Economy
As part of that pledge, the university’s investment arm has joined the UN-Convened Net-Zero Asset Owner Alliance, a global body created to help institutional investors transition to net zero emissions, the school said in a news release.
Universities around the world have begun taking action to align their investments with the urgent need to take action on climate change. Last month, Harvard University said it will stop investing in fossil fuels, pivoting its $42 billion endowment to support the green economy. Other schools including Cambridge University have made similar pledges.
The University of Toronto will unwind all direct investments in fossil fuel companies in the next 12 months and end all indirect exposure -- “typically held through pooled and commingled investment vehicles” -- no later than 2030, it said.
By 2025, 10% of the endowment portfolio, representing an initial commitment of C$400 million, will be allocated to sustainable and low-carbon investment strategies.
“As owners of financial assets such as endowments and pension funds, universities have both an economic imperative and a moral obligation to manage these assets in ways that encourage carbon emission-reducing behaviour in the wider economy,” Gertler said.
Most Read from Bloomberg Businessweek
- Workers Press for Power in Rare Advance for U.S. Labor Movement
- You Could Be Competing With Bots to Buy Gifts This Christmas
- Colombia’s Rain Shaman Got Paid to Stop the Storms, Until He Couldn’t
©2021 Bloomberg L.P.
Source : https://www.msn.com/en-us/money/other/university-of-toronto-endowment-is-phasing-out-fossil-fuels/ar-AAQ0ZTX753