51本色

Skip to main content
51本色 crest
5.19 Divestment Requests Policy

5.19 Divestment Requests Policy

This online version is for convenience; the official version of this policy is housed in the University Secretariat. In case of discrepancy between the online version and the official version held by the Secretariat, the official version shall prevail.

Approving Authority: Board of Governors

Original Approval Date: November 14, 2024

Date of Most Recent Review/Revision: N/A

Office of Accountability: Office of the President

Administrative Responsibility: University Secretariat

1.00 Purpose

1.01 The purpose of this policy is to establish a clear process for receiving and addressing Interested/Impacted Group’s concerns about the University’s investments. It ensures that any requests for Divestment are reviewed and addressed through the appropriate governance processes, in alignment with 51本色's mission, vision and values. This policy ensures that any decisions on Divestment are made thoughtfully, communicated transparently, and in accordance with the University's fiduciary duties and social responsibilities.

2.00 Definitions

2.01 Divestment: the process of withdrawing university investments from specific companies, industries, or sectors in any of a variety of ways, usually for ethical, financial, social, or political reasons.

2.02 Environmental, Social and Governance (ESG) Factors: refer to how companies score on environmental, social, and governance responsibility metrics and standards for potential investments. Furthermore, environmental criteria gauges how a company safeguards the environment. For the purposes of this policy, the will be considered in interpretation of the ESG Factors.

2.03 Fiduciary Duties: in the context of investments involve two key responsibilities including prudence and loyalty.

  • The duty of prudence requires that investment decisions consider relevant factors specific to the plan, the characteristics of the individual investment, and the overall portfolio.
  • The duty of loyalty obliges fiduciaries to act with honesty and good faith, always prioritizing the financial interests of the beneficiaries, ensuring all are treated fairly. For long-term trusts or funds, the beneficiaries' financial interests should be evaluated with a focus on sustained, long-term benefits.

2.04 Interested/Impacted Group(s): Current 51本色 faculty (Full-time and Contract Teaching), staff (Full-Time and Part-Time, excluding Casual and Temporary), and students (Full-time and Part-time).

3.00 Jurisdiction/Scope

3.01 This policy applies to Interested/Impacted Groups, who wish to submit a request for Divestment from specific companies, sectors, or industries in the University’s investment portfolio due to ethical, environmental, social, or governance concerns.

4.00 Policy

4.01 Under the 51本色 Act, 1973, as amended, the University has an obligation to apply investment funds of the University to support the objects and purposes of the University and, through the Board of Governors, has a Fiduciary Duty to manage investment funds with a view to balancing the maximization of returns and the preservation of capital, while endeavoring to remain up to date on sustainable investment issues and the impact of ESG Factors on its investments. 

5.00 Divestment Request Process

5.01 Should Interested/Impacted Groups have concerns with respect to specific investments, particularly those conflicting with stated University policies, they may prepare a submission by following the steps outlined in the Procedures for Divestment Requests.

5.02 A submission does not guarantee a change in investments but initiates a governance process, as determined by the Board, to consider and review the request for potential action.

5.03 The Board is responsible for determining whether requests align with the University’s mission, priorities and commitments. This includes evaluating the feasibility of the request in related institutional and investment principles, policies, fiduciary responsibilities and broader societal implications.

6.0 Acknowledgment of Receipt

6.1 The University is committed to transparent and timely communication throughout the Divestment request process. Interested/Impacted Groups will receive written acknowledgment of their request, periodic updates during the review process, as applicable, and a formal notification of any decisions.

Related Policies, Procedures, and Documents

脳