The Board of Regents for Victoria University in the University of Toronto voted in April 2023 to divest funds in its endowment portfolio that have exposure to fossil fuel producers.
In the past year, we have reached important milestones to advance our decision and we are confident we will be able to achieve it by 2030, which is consistent with the University of Toronto’s approach.
In April 2023, Victoria University had direct and indirect exposure to fossil fuels.
The direct exposure was a property in Weyburn, Sask., bequeathed by a U of T alumna, which contained an active oil well. We divested the property in September 2023, the university’s first significant milestone in the overall plan. This also aligns with Victoria University’s commitment to “intensifying sustainability initiatives across the entire university,” as articulated in our five-year Strategic Framework.
Our indirect exposure is through our endowment fund, which includes pooled funds. On Dec. 31, 2023, approximately 3 per cent of those pooled funds had some exposure to fossil fuels.
These pooled funds are independently managed by external investment managers in keeping with the university’s Statement of Investment Policies and Guidelines and taking into account the board’s commitment to meeting the university’s fiduciary requirements.
The Board of Regents formalized its divestment commitments at its April 2024 meeting by revising the Statement of Investment Policies and Guidelines for the university’s endowment funds to include the 2030 timeline for the divestment of funds that hold direct fossil fuel producer investments. This is the second milestone that will support our work toward 2030.
The university will work with its investment consultant and investment managers to ensure that the divestment commitments are met in accordance with the revised SIP&G.
We will continue to monitor the university’s environmental, social and governance status and report annually on our progress toward divestment.