HOLDINGS INCLUDE SIX HIGH RISK FIRMS, AMAZON, AND A COMPANY IMPLICATED IN A 2020 UN REPORT REGARDING BUSINESSES WITH TIES TO ISRAELI SETTLEMENTS IN OCCUPIED PALESTINIAN TERRITORIES
In 2012, the University of Ottawa became the first Canadian university to sign the United Nations’ Principles for Responsible Investment (UN PRI) — a group of six principles that institutions can pledge to adhere by in order to incorporate environmental, social and corporate governance (ESG) factors into its investment practices.
The Fulcrum spoke with Tom Valks, Chief Investment Officer with the University of Ottawa Pension Fund and Investment Management in order to better understand the U of O’s relationships with the UN PRI and its role in the U of O’s investments.
“The University of Ottawa’s investments are governed by its investment policy and its Responsible Investment Guidelines. These policies and guidelines are the guiding framework upon which all investment decisions are made,” explained Valks.
Valks also discussed the U of O’s commitment to divesting from fossil fuels in the context of long-term investments. “The other important step undertaken by the University was its announcement of fossil fuel divestment and climate change targets in 2022. These targets are comprehensive and leading amongst the university sector in Canada,” said Valks.
Despite these advancements in fossil fuel divestment specifically, the University of Ottawa’s long-term investment portfolio as of December 2022 continues to include holdings in several controversial companies.
In total, there are six firms deemed at severe risk of violating the United Nations’ Principles of Responsible Investment (UN PRI) according to Morningstar’s Sustainalytics’ ESG risk ratings — Axon Enterprise, Costa Group, Inghams Group, New Fortress Energy Inc., Reliance Industries Limited, and Whitecap Resources.
Another holding is Amazon, a company with a high ESG risk rating. Factors contributing to this rating include business ethics incidents in accounting and taxation, data privacy and security, human rights issues and labour relations with employees, and anti-competitive practices.
Other holdings also include seven aerospace and defense companies and a company implicated in a 2020 UN report regarding businesses with ties to Israeli settlements in the occupied Palestinian territories called Bookings Holdings.
The exact number of shares for each of the equity holdings was not provided by the university due to a number of contractual restrictions with underlying investment managers.
The Fulcrum spoke with Delphine Robitaille, president-elect of the University of Ottawa Students’ Union (UOSU) about ethical investing and the student union’s plan of action on this front.
“I think the message that it sends is really unfortunate because it’s essentially saying until ‘someone calls us out or until there’s concerted action that forces us to stop, we won’t’,” said Robitaille.
Robitaille also expressed frustration regarding the university’s hypocritical statements and actions.
“Put your money where your mouth is. When we have statements coming out from the university saying that they support their Palestinian students and Palestinian rights, it doesn’t mean much if they’re still financing companies and initiatives that have gone directly against that.”
Robitaille pointed to the university’s responsibility to students to maintain ethical investments as well, stating “It’s a slap in the face to students who are activists and advocates and vocal about it.”
“We have values outlined in our mandates, which include things like reproductive rights, environmental sustainability, and decolonization. So we can’t invest in things that go against those things. I really think that ethics is a matter of values, not rules…It’s not about “outlawing it,” it’s about making them realize that this is contradictory to the values that you claim to have,” said Robitaille.
Robitaille looked forward to how ethical investment practices will play a role during her mandate as UOSU president.
“Under my leadership, the union will not be investing in anything that has been proven or reported to have [a] negative social and environmental impact. The knowledge exists, there is no excuse to do it.”
