Acadia students place a lot of their hard earned money into their education. However, how these funds are used can seem to be an mystery for many. Where does our money go? In whose hands will it end up in? Would we be willing to tolerate our funds going to companies who engage in dubious ethical practices?
A recent trend in the climate change debate is concerns financial matters. Universities across Canada and the United States, along with other groups and organizations are making the switch to more ethically focused investment deals, in a little something called divestments. According to the top divestment campaign Fossil Free, divestments are “the opposite of an investment–it simply means getting rid of stocks, bonds or investment funds that are unethical or morally ambiguous.” Basically, this means having the option to select portfolios that invest in companies who use ethical and environmentally conscious practices.
If this trend can continue to grow, it could mean big things for the market itself. Companies, not in compliance with the demands of these divestments, would need to make a decision—continue with their current practices, or reevaluate and conform to the demands of investors. This results in creating change amongst certain industries, as the basis of these divestment portfolios is to reduce the amount of investment in companies who create excessive fossil fuel emissions. This could another way in which to lead environmental change for the future at the individual level.
However, the current challenge with these campaigns is not getting the word out, it is the amount of work associated with setting them up! For an organization or individual to make the decision to invest in these types of companies, research is required. Presently, most investment packages are just that—packages! To gain the most for your dollar, financial advisers generally put together a package that includes varying stocks that are dependent on the type of return sought. For those more aggressive plans, investments need to be made in industries that are moneymakers. Currently, these investments tend to favour heavy polluters, such as oil and gas companies. Therefore, in order to successfully implement a divestment package, it is necessary to investigate each individual company within that block of potential investments. To add to the challenge, legislation and organizational polices change frequently, as do the concerns and priorities of the investors. Furthermore, what might apply to one area of the world does not necessarily apply globally.
Here at Acadia, divestments are merely a discussion. Although no formal divestment plan is currently in the works, the university has made some strides in this direction. Presently, there are two investment options for employees of the University; investment funds and endowment funds. Both options are overseen by a committee under the advisory of an investment manager, who monitor the ethical practices of the companies they invest in.
The ASU (Acadia Student Union) also has it in their constitution that investments must be ethically sound. Unfortunately, the VP Finance did not return attempts to discuss this section in more detail. There is, however, buzz stirring around campus that students are trying to put together a divestment campaign; a result of the recent AYEC Speak Up! Conference hosted at Acadia last month. There is more emphasis on discussion regarding ethical investment.
For more information on Fossil Free’s campaign, visit their website at http://gofossilfree.org.
Atlantic Youth Environmental Council 