University reaches major milestone in fight to protect its endowment: 'Not impact performance if done prudently'

A recent news release announced that Canada's University of Guelph has completed its divestment from companies holding fossil fuel reserves in its endowment portfolio.

The news release states that the shift would "not impact performance if done prudently."

In April 2020, the university committed to the divestment in fossil fuels, becoming one of the first Canadian universities to make this decision.

The goal of the multiyear plan was to reduce the environmental impact of the university's endowment investments.

University of Guelph conducted research and analysis about fossil fuel divestment over a five-year period, seeking input from and following recommendations of students, administration, and the university board's finance committee.

Universities and businesses are starting to see the twofold benefit of moving away from dirty energy in practice and investments. These commitments to a cleaner future have both a positive impact on the environment and their financial outlook, as eco-conscious individuals are paying closer attention to how these institutions are investing, the policies they are implementing, and the actions they are taking.

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By supporting companies that are implementing environmentally friendly policies and producing goods with sustainable materials and practices, consumers voice their priorities by putting their money where their values lie. This can help incentivize these companies to continue to make progress toward sustainability, as well as influence other institutions to do the same.

Going beyond the products we buy and the services we use, we can consider the environmental decisions and impact of companies in which we are considering investing.

GreenPortfolio is a valuable, free resource for people looking to make financial and investment decisions that align with their environmental values. While it can be difficult to understand the best way to make investments that are financially and environmentally beneficial, GreenPortfolio helps connect individuals with remote financial advisors who make eco-conscious investing simple, offering information on how to build their investment portfolio.

According to the news release, the University of Guelph's divestment aligns with its proposed timeline. This news is encouraging, as is the university's commitment to monitoring "new trends and evolving developments in responsible investment in pursuit of climate goals."