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Aiming to Boost Diversity, Canadian Institutions to Monitor Corporate Behavior

A group of funds holding roughly $2.3 trillion say they will make demands on companies whose stocks are in their portfolios.
By Sarah Min


A group of Canadian institutional investors with roughly $2.3 trillion in assets have joined a push in the wider industry to integrate diversity and inclusion in their investing practices.

Thirty-one signatories pledged they would monitor the diversity and inclusion practices of Canadian public companies in their portfolios, such as by pushing for improved disclosures, investment industry group Responsible Investment Association said last week. 

The asset owners and managers also said they also expect a revamping of company policies, targets, and timelines that improve diversity among board leadership and senior management.

“We all have a responsibility to ensure that the persistent inequities in business and our society are eliminated,” read the statement. 

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“As institutional investors, we can contribute to addressing these inequities in Canada by taking intentional steps to promote diversity and inclusion across our portfolios and within our organizations.”

Signatories include Alberta Investment Management Corporation (AIMCo), Caisse de dépôt et placement du Québec (CDPQ), and British Columbia Investment Management Corporation (BCI). 

Since June, when the death of George Floyd and other events sparked nationwide protests in the U.S., other institutional investors have deepened commitments to address racial economic disparities. In September, the Connecticut treasurer and the Ford Foundation launched a coalition of 14 firms with roughly $460 billion in market capitalization pledged to make greater strides toward racial equity.

Analysts at S&P Global also consider the growing corporate response to the racial unrest will increasingly impact environmental, social, and governance (ESG) scores for businesses.

Other Canadian investors making the pledge include: 

Addenda Capital
AGF Investments
Bâtirente
BMO Global Asset Management
Canada Post Corporation Pension Plan
Central 1 Credit Union
CIBC Asset Management
Connor, Clark & Lunn Investment Management
Deetken Impact
Desjardins Group
ELFEC
Gestion FÉRIQUE
Global Alpha Capital Management
IG Wealth Management
Jarislowsky Fraser Global Investment Management
Mackenzie Investments
MD Financial Management Inc.
Montrusco Bolton Investments Inc.
NEI Investments
OPSEU Pension Trust (OPTrust)
PCJ Investment Counsel
Rally Assets Inc.
RBC Global Asset Management Inc.
Scheer, Rowlett & Associates Investment Management
SEI Investments
Simon Fraser University
The United Church of Canada
University of Toronto Asset Management (UTAM)

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Home > News > Asset Allocation > Cambridge University to Divest from Fossil Fuels by 2030
Asset Allocation

Cambridge University to Divest from Fossil Fuels by 2030

University also vowed to reduce its greenhouse gas emission to zero by 2038.
By Michael Katz


The University of Cambridge said it will divest from all direct and indirect investments in fossil fuels by 2030 as part of the university’s plan to cut its greenhouse gas emissions to zero by 2038, more than a decade before the target date set by the UK government.

The university also said its £3.5 billion ($4.5 billion) Cambridge University Endowment Fund, among the biggest of its kind in Europe, will increase investments in renewable energy as it divests from fossil fuels.

“The university is responding comprehensively to a pressing environmental and moral need for action with an historic announcement that demonstrates our determination to seek solutions to the climate crisis,” Cambridge University Vice-Chancellor Stephen Toope said in his annual address last week. “We will approach with renewed confidence our collaborations with government, industry, and research partners around the world as together we work for a zero-carbon future.”

Among the changes the university will make include:

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  • Withdrawing investments with conventional energy-focused public equity managers by this December

  • Building up “significant investments” in renewable energy by 2025

  • Divesting from all meaningful exposure in fossil fuels by 2030

  • Targeting net zero greenhouse gas emissions across its entire investment portfolio by 2038

Cambridge also said that all research funding and other donations going forward will be scrutinized to ensure that the donor can demonstrate compatibility with the university’s objectives on cutting greenhouse gas emissions before any funding is accepted. The university also said it is committed to using its resources to support the global response to climate change and the wider United Nations’ Sustainable Development Goals.

For years, Cambridge has been under pressure by students, faculty, and activists to divest from fossil fuel companies, but has been reluctant to do so until now. As recently as last November, the university was criticized for accepting a £6 million donation from oil and gas giant Shell to fund a team to research oil extraction technology.

“This is a landmark decision for which students, staff, and the Students’ Union have been campaigning for years,” Ben Margolis, undergraduate president of the Cambridge Students’ Union, said in a statement. “We hope that other institutions join us in divesting and take firm action in the face of the climate emergency.”

The changes were also supported by Cambridge Zero, the university’s climate change initiative. Cambridge Zero Director and climate scientist Emily Shuckburgh said the move puts Cambridge “at the forefront of the Race to Zero, the global alliance committed to rapidly reaching net zero emissions, and hopefully it will inspire many others to join in the ambitious climate action.”

The university’s investment office said it will work with Cambridge Zero and the Cambridge Institute for Sustainability Leadership to offer external fund managers access to research and advice on sustainable finance, starting with its partners who collectively have more than £190 billion under management.

“Climate change, ecological destruction, and biodiversity loss present an urgent existential threat, with severe risks to humankind and all other life on Earth,” Cambridge CIO Tilly Franklin said in a statement. “The investment office has responded to those threats by pursuing a strategy that aims to support and encourage the global transition to a carbon-neutral economy.”

Related Stories:

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