vision and leadership

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VisionandLeadershipTowardsResponsibleEnvironmentalCitizenshipatMcGillUniversity

ByChristopherBangs


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VisionandLeadership


November2012

Ifwearecomplacent,theworldwillpassusby.

PrincipalMonroe-Blum

ByChristopherBangs

Globalclimatechangeiscalledthemostsignificantthreatfacinghumanity.

Anthropogenicgreenhousegasemissionshavesteadilyraisedthetemperatureof

theplanetsincethestartoftheIndustrialRevolutioninthe18thcentury.TheEarths

surfacetemperatureisnow0.8Cwarmerthanin1911,with0.6Cofthatwarming

occurringinthelastthirtyyears(BASC,2011).

Thescienceonglobalwarmingisclearandcompelling.Thisbriefwilllayout

theimpactsofclimatechangeontheplanet,discussthenegativeeffectsofclimate

changeonMcGillUniversitysfuturefunding,detailtheinvestmentlinksbetween

theUniversityandfossilfuelcompanies,andarguethattheBoardofGovernors

mustdivestfromfossilfuelcompaniestofulfillitsmoralobligationtohumanityand

itsfiduciaryobligationstotheUniversity.


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Giventheurgencyofclimatechangeandtheclearandcompellingrationale

fordivestment,thestudents,faculty,staff,andalumniofMcGillUniversitydemand

that:

1. ThattheInvestmentCommitteebeinstructedtoimmediatelydispose,inanorderlyandresponsiblefashion,oftheUniversitysholdingsincorporations

whichdeveloptheCanadiantarsands,transportorrefinehydrocarbonfrom

theCanadiantarsands,sellproductsoftheCanadiantarsands,orare

otherwiseinvolvedintheproduction,distributionorsaleofgoodsfromthe

Canadiantarsands,asdeterminedbytheCommitteetoAdviseonMattersof

SocialResponsibility.

2. ThattheInvestmentCommitteebeinstructedtodispose,inanorderlyandresponsiblefashioninnolongerthanthreeyears,oftheUniversitysholdings

incorporationswhichproduce,refine,transport,orsellfossilfuels,as

determinedbytheCommitteetoAdviseonMattersofSocialResponsibility.


infinancialinstitutionswhichhavenotadopted,asdeterminedbythe

CommitteetoAdviseonMattersofSocialResponsibility,apolicyofmaking

nofurtherloanstocorporationsthatproduce,refine,transport,orsellfossil

fuels.

CanadasFutureinPeril

AccordingtotheBoardofAtmosphericSciencesandClimate,thearmwithin

theAmericanNationalAcademiesforatmosphericandclimatesciences,The

preponderanceofthescientificevidencepointstohumanactivitiesespeciallythereleaseofC02andotherheat-trappinggreenhousegases(GHGs)intothe

atmosphereasthemostlikelycauseformostoftheglobalwarmingthathas

occurredoverthelast50yearsorso(CommitteeonAmerica'sClimateChoices15).


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ScientistsagreethatthehighestsafelevelofC02at350partspermillion;

humanemissionshavenowpushedthelevelofC02intheatmosphereto392ppm

(350.org).

TheBASCfurtheradvisesthat,Thefasteremissionsarereduced,thelower

therisksposedbyclimatechange.Delaysinreducingemissionscouldcommitthe

planettoawiderangeofadverseimpacts..[and]therisksassociatedwithdoing

businessasusualareamuchgreaterconcernthantherisksassociatedwith

engaginginstrongresponseefforts(CommitteeonAmerica'sClimateChoices2).

Canada,throughitsinternationalagreementshasmadestrongcommitments

toagreenfuture.Inthe2010CancunagreementsoftheUnitedNationsFramework

ConventiononClimateChange,Canadaaffirmed:

thatclimatechangeisoneofthegreatestchallengesofourtime...

[and]thatdeepcutsinglobalgreenhousegasemissionsarerequired

accordingtoscience,andasdocumentedintheFourthAssessment

ReportoftheIntergovernmentalPanelonClimateChange,withaview

toreducingglobalgreenhousegasemissionssoastoholdtheincrease

inglobalaveragetemperaturebelow2Cabovepreindustriallevels,

andthatPartiesshouldtakeurgentactiontomeetthislong-termgoal,

consistentwithscienceandonthebasisofequity(UnitedNations2,

3).

Despitethescientificconsensustheconsensushasbeenendorsedby

everyNationalAcademyofscienceofeverymajorcountryontheplanet,every

majorprofessionalscientificsocietyrelatedtothestudyofglobalwarmingand98

percentofclimatescientiststhroughouttheworld,writesAlGore(Gore)and

despiteCanadasstrongpubliccommitments,ourcountryispushingforwardwithdevelopingtheTarSands,hasbarelyevenslowedtherateofgreenhousegas

emissionsgrowthletalonereducedemissions,andunderthecurrentgovernment

haspulledoutoftheKyotoProtocol.

Climatechangeraisesglobaltemperatures.Everysummer,newtemperature

recordsaresetacrosstheglobe.MuchoftheSouthWestUnitedStatessaw


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unprecedentedwildfiresanddroughts,whileregionsacrosstheworldface

extraordinaryfloodingandstorms.

Climatescientistsusedtosaythatglobalwarmingstacksthediceinfavourof

moreextremeweather:whatmighthaveusedtobeastormsolargethatitoccurred

onlyonceevery1,000yearsnowmighthappenevery500,ora100-yearfloodmight

insteadhappenevery60years.Nowtheysaythatweareaddingmoredotsonthe

dice:whereasbeforewemighthaverolleda12,nowwearerolling13sand14s.

Entireneighborhoodsofmanymajorcitiesarethreatenedbyglobalwarming.

Vancouver,NewYork,NewOrleansandmanyotherNorthAmericancitiesareso

closetosealevelthatprojectedsealevelincreasescouldputsectionsunderwater

(Gore).

Asthetemperaturerises,wecanexpectmoreandmoresevereimpacts.The

IntergovernmentalPanelofClimateChange,inits2007report,discussedsome

examplesofimpactsassociatedwithglobalaveragetemperaturechange.Appendix

1.1reproducesafiguredemonstratingsomeoftheimpactsofclimatechange

(IntergovernmentalPanelonClimateChange).InNorthAmerica,thereport

continues,

Warminginwesternmountainsisprojectedtocausedecreased

snowpack,morewinterfloodingandreducedsummerflows,

exacerbatingcompetitionforover-allocatedwaterresources.

Intheearlydecadesofthecentury,moderateclimatechangeis

projectedtoincreaseaggregateyieldsofrain-fedagricultureby5to

20%,butwithimportantvariabilityamongregions.Majorchallenges

areprojectedforcropsthatarenearthewarmendoftheirsuitable

rangeorwhichdependonhighlyutilisedwaterresources.

Citiesthatcurrentlyexperienceheatwavesareexpectedtobefurtherchallengedbyanincreasednumber,intensityanddurationof

heatwavesduringthecourseofthecentury,withpotentialfor

adversehealthimpacts.

Coastalcommunitiesandhabitatswillbeincreasinglystressedby

climatechangeimpactsinteractingwithdevelopmentandpollution.


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AndforCanadianslivinginPolarRegions,thereportdiscussessome

projectedregionalimpacts,including,

Themainprojectedbiophysicaleffectsarereductionsinthickness

andextentofglaciers,icesheetsandseaice,andchangesinnatural

ecosystemswithdetrimentaleffectsonmanyorganismsincluding

migratorybirds,mammalsandhigherpredators.

ForhumancommunitiesintheArctic,impacts,particularlythose

resultingfromchangingsnowandiceconditions,areprojectedtobe

mixed.

Detrimentalimpactswouldincludethoseoninfrastructureand

traditionalindigenouswaysoflife.

Inbothpolarregions,specificecosystemsandhabitatsareprojected

tobevulnerable,asclimaticbarrierstospeciesinvasionsarelowered.

ItisclearthatCanadafacesclearandpressingchallengesfromclimate

change.

PressedfromAllSides

ThemanyproblemsposedbyclimatechangearepressuresontheUniversity.

WarmingthreatensalloftheUniversitysfundingsourcesinmanyways.Falling

returnsoninvestmentcanbeexpected,whileinfrastructurecostswilldemanda

largerpercentageoftheQuebecgovernmentexpenditures.Alumniandparentswill

belessabletogive.Thesethreefoundingsourcescomprisethevastmajorityof

McGillUniversitysannualbudget. Governmentfundingwillbemoredifficulttocomeby.48%ofthe

Universitysannualbudgetcomesfromprovincialsubsidies(McGillUniversity

OfficeoftheProvost),ahugesourceoffundingthatwouldbehardtoreplace.Asthe

claimsongovernmentrevenueriseduetoglobalclimatechangenewpublic

infrastructurewillneedtobebuilt,oldinfrastructurewillneedtobereplacedmore


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often,emergencydisasterspendingwillbeneededmoreoften,andincomesupport

programsmightneedtobeexpandeditisclearthatthemoneywillhavetocome

fromeitherincreasedtaxesorsavingsinotherpartsofthebudget.Taxincreases

ultimatelyeitherfallonindividualsorshareholders,hittingMcGillatbothends.The

formerLiberalgovernmentandthecurrentPQgovernmenthavebothshown

themselveswillingtoreducetherelativegovernmentcontributiontohigher

education,andtheMELSgrantstopublicuniversitiesinQuebecmightshoulder

someoftheburdenofgovernmentcutbacks.Continuedpublicsubsidiesarenot

guaranteedtoremainatasustainablelevelalthoughtherearemanyofusstudents

whowanttoseethemincreasedgreatlyandglobalclimatechangethreatensthe

continuedpublicinvestmentinhighereducation.

Theeconomiccostsofglobalwarmingthreatenthereturnoninvestmentfor

McGillUniversitysendowment.Allsectorsoftheeconomywillfacerisingcoststhat

willbefactoredintoeitherprofitsorconsumerprices.Theriseofextremeweather

eventslikefloodingandhurricanesmeansthatbusinessesmustpurchasemore,and

moreexpensiveinsuranceandwillhavetoreplacecapitalfaster.Vancouver,New

York,andotherlarge,coastalNorthAmericancitiesinwhichtheUniversityhas

largeinvestmentscouldseeentireneighborhoodsengulfedbytheocean.

AccordingtotheIPCC,infrastructureacrossthecoastisimpactedbymanyeffectsof

globalwarming,includingtemperaturerise,extremeweatherandoceanevents,

flooding,erosion,andsaltwaterintrusion(M.L.Parry6.4.2,14.2.3;Sinoski).These

factorsmeanthattransportationcostswillrise,andthatcapitalmighthavetobe

movedinland,andthatshippingandpipelineinfrastructurewillbelesssecure.

Appendix1.2detailsthedirectandindirectimpactsonthebuilt

environment,infrastructureindustries,andnaturalresourceinfrastructures.Many

ofthesecostswillbebornbygovernments,andotherswillbebornbyindividualsandcorporations.Governmentsacrosstheworldwillhavetolevytaxestoraise

seawalls,expandsewers,andrespondtodisasters.Thatgovernmentmoneywill

comefromcorporations,eitherthroughdirectcorporatetaxesorthroughincreased

taxesonlabour,andthosecorporationswilllikelypasssomeofthosecostsonto

theirshareholders.Corporationswillpayhigheroperatingcosts,includingheating,


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coolingandbuildingmaintenance,andincreasedpricesforinputsduetomitigation

effortsandscarcitywillhavetobebornbyeitherconsumersorshareholders.

Backingupthisanalysisarethepredictionsofglobalcapitalistinvestors.Onein

threesurveyedtoldBloombergNewsthattheyexpectedcorporateprofitstofalldue

toactiontolimitpollution(only38%believethatglobalwarmingisamajorthreat

totheenvironment,while40%believeitisaminorthreat)(Efstathiou).If

shareholderreturnsfallastheConsumerPriceIndex,ameasureofinflation,rises,

thenthereturnonMcGillsendowmentwillbelesssecureandwillprovideless

financialsupportfortheUniversitysfutureoperations.

Thusdecreasedcorporateprofitsseemlikely,asdodecreasedrealincomes

forfamilies,someofwhomwillsendtheirchildrentoMcGillUniversity.Individuals

willpayhighertaxesandhigherpricesforgoods.Allofthedriversoflower

shareholderreturnsarealsodriversofhigheroutputprices,andmarketscanexpect

priceincreasesacrosstheboard.Thosepriceincreasescouldresultfrommitigation

effortsorfromscarcity.Regardless,thegrowthrateinrealfamilyincomeswillbe

negativelyimpactedbyhigherprices,andthatcouldaffectMcGillintwomainways.

Lowerrealparentalincomemayforcemanytalentedstudents,especiallyout-of-

provinceandinternationalstudentspayinghighertuitionrates,tochoosean

alternativeschoolorgodeeplyintodebt,requiringmorestudentstoworklonger

hours.Whenstudentsworkmorethan15hoursaweek,theiracademicssuffer,as

doestheirabilitytoparticipateintheMcGillcommunity(BCTeachersFederation).

Evenmore,theabilityofalumniandparentstogivebacktoschoolthroughfinancial

donationsisthreatenedbythefallinrealincomes.Ifgraduateshavelessdisposable

incomeatallstagesoftheirlife,thefrequencyandsizeofgiftscanbeexpectedto

fall.Decreasedrealincomesduetoclimatechangewouldseemtoimposerealcosts

ontheUniversity. Climatechangeclearlyposesarisktothecontinuedfinancialhealthofthe

University.ResponsiblegovernancerequiresBoardmemberstoputtheUniversity

inapositiontohelptackletheproblemofclimatechange.Someresearchersat

McGillUniversityarealreadyworkingtowardssolutions,butMcGillcandomore


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thanresearch.Ifweareseriousaboutmitigatingglobalwarming,divestmentisthe

bestoption.

InvestinginFossilFuels:ABadDealforMcGillUniversity

McGillUniversitysinvestmentsinfossilfuelsmakeuparelativelysmall

portionoftheendowmentfund,buttheglobalimpactofthosecompaniesthe

Universityinvestsinisextraordinary.TheDecember2011reportonthePublicly

TradedEquityHoldingsoftheUniversityisthemostrecentdataavailable,andall

discussionofthecompositionofMcGillsinvestmentscomesfromthatlist.Twolists

wereusedtoidentifyspecificcorporations.Thefirst,fromtheRainforestAction

Network,listscompaniesinvolvedintheCanadiantarsands;thesecond,fromthe

CarbonTrackerInitiative,hastwolistsofthetop100companieswiththelargest

estimatedcarbonreserveseitherincoal,orinoilandgas.

McGillinvestsin645publiclytradedcorporations.14areinvolvedinthetar

sands,while35numberamongtheworldslargestfossilfuelcorporations.Intotal,

thesetwolistsidentify37uniquecompaniesthatMcGillprofitsfrom,5.89%ofthe

Universitysuniqueholdings(Appendix2hasthecompletelistofthesefirms).The

numberofsharesineachisnotpubliclyavailableatthetimeofwriting,although

AccesstoInformationrequestsfiledundertheActrespectingaccesstodocuments

heldbypublicbodiesANDtheprotectionofpersonalinformationwillhopefully

providefurtherinsighttomembersoftheMcGillcommunity.

Itshouldbemadeclearthatthisisanincompletelistofthefossilfuel

companiesthatMcGillinvestsin.Onlythelargestanddirtiestfossilfuelcompanies

arerepresentedontheselists,andothersmallercorporationscertainlycomprise

partoftheschoolsendowmentfund. Ofthe35companiesidentifiedbytheCTI,manyarecross-listedonallthree

lists,meaningtheyhavesomeofthelargestreservesofcarbonincoal,andinoiland

gas,andtheyinvestinthedirtiestformofoilproductionontheplanet.TheCTIalso

expresseditsconcernthatCanadianaccountingpracticesartificiallylowerthesize

ofunconventionaloilreservesizeestimation,sincetheyareonlyreportedunder


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Canadianrulesonceproductionisbelievedtobeimminent(Initiative12).Thusit

islikelythatthesizeoftheactualreservesofcarbonownedbythe12firmsinvolved

inthetarsandsforwhichanestimationisavailableissignificantlylargerthan

expressed.

Alltoldthese35companieshave205.455GigatonnesofC02lockedaway

beneaththeearth.Ifhumanityburnsthatcarbon,globalwarmingwillbe

uncontrollable.Understandingtheenormityof205.455GigatonnesC02isnoteasy,

butthefollowinggraphsshouldhelp.

Chart1showsthedifferencebetweenyearlyglobalanthropogeniccarbon

emissionsandtheestimatedcarbonreservesthatMcGillisprofitingfrom.In1751,

justatthestartoftheIndustrialRevolution,humansemittedjust.003Gigatonnesof

C02ayear.In2008,weemitted8.749Gigatonnes.Ifthesecorporationsburnallof

theircarbonreserves,thatistheequivalentofpumpingoutaboutanotherquarter-

centuryofemissions.

0 50 100 150 200 250 300 350

GigatonnesC02

Chart2.TotalEmissionsinComparison

Emissions,1751-2008 EstimatedCarbonReserves

0

50

100

150

200

250

GigatonnesC02

Chart1.YearlyEmissionsinComparison

1751

2008

EstimatedCarbon

Reserves


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Toseethisissueinanotherlight,humansemitted356.758GigatonnesofC02

from1751to2008(dataonthelastthreeyearsarenotreadilyavailable,but

probablyanother20to35Gigatonneshavebeenemittedsince).Chart2showsthe

sizeofthoseemissions.Humansraisedtheamountofcarbonintheatmosphere

from275ppmto392ppm,ora117ppmincrease(350.org).Ifthese35companies

burntheirentirereserves,thatwouldbeanadditional57.64%ofallanthropogenic

carbonemissionssincethestartoftheIndustrialRevolutionreleasedintothe

atmosphereif350ppmisthemaximumsafelevel,another205.455Gigatonnesof

C02meansrapid,severewarming.Thereisnocomingbackfromthat.

WiththeadditionalcarbonreservesnotrepresentedontheCTIsestimates,

itisclearthatMcGillUniversityisdirectlyprofitingfromtheexploitationofmassive

carbonreserves,andourinvestmentsservetolegitimizethissystemoffossilfuel

consumption.Ifthecompaniesweinvestincontinuetocarryonbusiness-as-usual,

globalclimatechangeisunavoidable.

Thequestiontheniswhattodoaboutthisproblem.Theresponsibleanswer

isdivestment.

Divestment:McGillasaWorldLeader

Divestmentisaneffectivetoolinthearsenalofsociallyresponsible

universitiestoaffectwide-reaching,deepchange.IfMcGillUniversitytakesbold

decisiveactionbypubliclydivestingfromfossilfuels,itwillattractglobalattention

asaworldleaderinsustainabilityandenvironmentalgovernance.Itisalsotheonly

responsiblecourseofactionforfulfillingtheBoardofGovernorsfiduciary

obligationtothefinancialwellbeingoftheschool.

MovementsatcomparableuniversitiesacrossNorthAmericahavetakenholdinthelastthreeyears,startingatHarvardUniversityandspreadingtoAmherst

College,BostonUniversity,BrownUniversity,TuftsUniversity,andYaleUniversity

(DivestforOurFuture).Furthermoreagrowingpoliticalconsensus,especiallyin

Quebec,recognizesthatwewilleventuallyendourrelianceonfossilfuels.Wewill

putanendtofossilfuels;theonlyquestioniswhen?


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IfMcGillUniversitygoesfirst,itwillraisethepoliticalcapitalofthe

University.McGillwillbeaworldleaderinresponsiblegovernance,attracting

headlinesacrosstheglobeuniversitieslikeHarvardandYalewillbeforcedtoplay

catch-up,orbeforeverrememberedastheschoolsthatrefusedtoact.Formany

studentsenteringuniversity,thisglobalenvironmentalcrisisisoftheutmost

importance,andtalented,drivenyoungpeopleconsideringundergraduateor

graduateschoolarelookingforauniversitythatcanspringboardtheirfuture

careers,providefortheirpersonalgrowth,andwheretheycanlivetheirvalues.

LeadershiponthisissuewouldbothexpandthecachetoftheUniversityandthe

qualityoftheapplicantpool.

Alumnidonationscanalsoreasonablybeexpectedtorise.Manystudieshave

shownthatalumniwithapositiveemotionalattachmenttotheiruniversityare

morelikelytodonate,andtheyhavealsoshownastrongpositiverelationship

betweenthecapacitytogiveanddonorstatus(Hoyt).Alumnisharethebroad

societalconcernoverglobalwarming,andseeingMcGillUniversitytakeboldaction

tomitigateclimatechangewouldraisethefrequencyandintensityofpositive

emotionalattachmentstotheschoolformost.Byprecipitatingabroadersocial

moveawayfromfossilfuels,McGillsactionswouldalsoensurethatthereal

incomesofalumnidonotfallduetocarbonemissions.Thusactiononclimate

changeraisesboththelikelihoodthatalumniwouldwanttogive,andtheabilityof

alumnitogive.

Divestmentcanalsopushentiregovernmentstoaction.Inthelatestnational

election,concernoverclimatechangespannedalloftheparties,includingtheParti

Qubcois,whichformedthepresentminoritygovernment;thePQhasbanned

frackingtowidepublicacclaim.Thereissocialsupportforstrongactiontomitigate

climatechange,andthehistoricalrecordofdivestmentshowsthatoneuniversitycanspurbroaderaction.

MichiganStateUniversitywasoneofthefirstschoolsinNorthAmericato

divestfromSouthAfrica,passingitsresolutionin1977.Itsleadershipencouraged

thestateofMichigantorequireallpublicuniversitiesinthestatetodivesttheir

holdingsinSouthAfrica.Whilethatlawwaseventuallystruckdownbyacourt,


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MichiganStatescourageousstewardshipnotonlypresagedbutbroughtabout

broadersocialchange.MichiganStatewillalwaysberememberedfortakingastand

againstapartheid,whileschoolsthatfailedtorespecthumanrightscannever

obviatethatmarkagainstthem.IfMcGillUniversitymakestherightchoices,itwill

alwaysberememberedasaworldleaderinsociallyresponsiblegovernance,and

giventhewillingnessofQuebectoengagewiththeissueofclimatechange,

divestmentcouldprecipitatenationalaction.

Further,thisisapositivefinancialdecisionfortherateofreturnofthe

Universitysendowment.Acrosstheworldgovernmentshavepassedorare

consideringlegislationtoregulatefossilfuelsandcarbonemissions.Europealready

hascap-and-tradelegislation,andCaliforniaisconsideringoneaswell,while

Swedenhasputinplaceacarbontax,andU.S.PresidentObamadelayedthe

KeystoneXLpipelinecarryingbitumenandotherproductsofthetarsandsfrom

CanadadowntoTexas.Worldwide,pressureisbuildingtoreplacetheKyoto

Protocolwithamoreeffectiveversion.Fossilfuelsonlymakeprofitswhenthefull

costoftheiruseisnotbornbytheproducers.Oncemorestringent,wide-reaching

measuresareinplacethatforcecompaniestopaythefullsocialcostsoftheir

products,fossilfuelcompaniesratesofreturnwilldropthereisnowayaround

that.

Anymajorannouncementofeffectiveclimatechangemitigationlegislation

willcausethevaluesofthesestockstodrop;whenBPgarneredinternational

attentionforthehugespillintheGulfofMexicotwoyearsago,itssharepricefell

dramatically.Byshiftingoutofthesestockstosafer,morestableassets,McGill

Universitycanensurethevalueofitsportfolio.Investinginfossilfuelcompaniesisa

risktoMcGillsfinancialsecurity,andtheUniversitycanfindsimilarreturnsfrom

saferstocks. Divestmentisthebestcourseofaction.Bydivestingfromfossilfuel

companiesandthefinancialinstitutionsthatfundthem,McGillUniversitywillbe

internationallyrecognizedforitsprogressiveenvironmentalcitizenshipandwillbe

rewardedbyalumni,parents,prospectivestudents,andprospectivefaculty.It


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reducestheuncertaintyinthevalueoftheendowmentthatcomesfrommajor

policychanges.

Andultimately,itistherightthingtodo.Weneedtomovetoacarbon-

neutralfuture,andMcGillUniversityhasanobligationtoitsstudentsandstaff,to

thepeopleofQuebecandCanada,andtotheplanet.

MovingForward

Timeisoftheessence.Weneedimmediateactiontokeepthisplanetlivable,

andMcGillUniversityisinapositiontoact.ClimatechangethreatenstheCanadian

peopleanditjeopardizesthefutureofMcGillsfinancialstability.Giventheurgency

ofclimatechangeandtheclearandcompellingrationalefordivestment,the

students,faculty,staff,andalumniofMcGillUniversitydemandthat:

1. ThattheInvestmentCommitteebeinstructedtoimmediatelydispose,inanorderlyandresponsiblefashion,oftheUniversitysholdingsincorporations

whichdeveloptheCanadiantarsands,transportorrefinehydrocarbonfrom

theCanadiantarsands,sellproductsoftheCanadiantarsands,orare

otherwiseinvolvedintheproduction,distributionorsaleofgoodsfromthe

Canadiantarsands,asdeterminedbytheCommitteetoAdviseonMattersof

SocialResponsibility.


incorporationswhichproduce,refine,transport,orsellfossilfuels,as

determinedbytheCommitteetoAdviseonMattersofSocialResponsibility.

3.ThattheInvestmentCommitteebeinstructedtodispose,inanorderlyandresponsiblefashioninnolongerthanthreeyears,oftheUniversitysholdings

infinancialinstitutionswhichhavenotadopted,asdeterminedbythe

CommitteetoAdviseonMattersofSocialResponsibility,apolicyofmaking

nofurtherloanstocorporationsthatproduce,refine,transport,orsellfossil

fuels.


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Appendix1

1.1Examplesofimpactsassociatedwithglobalaveragetemperaturechange

(IntergovernmentalPanelonClimateChange)


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1.2Table7.2fromsection7.4.2.1oftheIPCCsClimateChange,2007Report:

WorkingGroupII:Impacts,AdaptationandVulnerability.


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Appendix2

McGillUniversitysinvestmentsinfossilfuelcompanies,

andthesizeoftheirestimatedcarbonreservesTheestimatedcarbonreservesof35ofthefossilfuelcompaniesMcGill

investsin.Companies Coal

(GtC02)

Oil

(Gtc02)

Gas

(GtC02)

Total

(GtC02)

AGLEnergy 0.89 0.89AngloAmerican 16.75 16.75

ArcelorMittal 0.62 0.62

BaytexEnergyCorp* 0.3 0.3BGGroup 2.29 0.48 2.77BHPBilliton 16.07 1.82 0.2 18.09

BonavistaEnergyCorp 0.18 0.03 0.21

BP* 32.68 1.92 34.6CairnEnergy 0.35 0.35

CanadianNaturalResources*

4.23 0.14

4.37

CenovusEnergyInc* 1.4 0.006 1.406

Chevron* 20.11 1.11 21.22

CrescentPointEnergyCorp. 0.47 0 0.47EnCanaCorp.* 0.24 0.47 0.71EOGResources 0.97 0.38 1.35

ExxonMobil* 38.14 2.89 41.03

GDFSuezS.A. 0.17 0.05 0.22InpexCorp 2.44 0.1 2.54

ItochuCorp 0.34 0.34MitsubishiCorp 4.31 4.31

Mitsui 1.03 1.03

Nexen* 1.4 0.002 1.402

OilSearchLTD 0.91 0.91OMV 1.02 0.06 1.08

RepsolYPFS.A. 2.75 0.29 3.04

RioTinto 5.23 5.23RoyalDutchShell* 14.11 2.09 16.2

RWEAG 1.94 1.94

SantosLimited 0.19 0.17 0.36


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StatoilASA* 2.23 0.25 2.48

SuncorEnergy* 3.74 0.007 3.747TalismanEnergyInc. 1.47 0.19 1.66

TullowOil 0.36 0.01 0.37Wesfarmers 1.86 1.86

Xstrata 11.6 11.6 Coal Oil Gas Total

Total 60.64 133.97 10.845 205.455

*Alsoinvestsinthetarsands;duetoCanadianaccountingpractices,theestimated

carbonreservesforcompaniesthatexploitthetarsandslikelyholdhighercarbonreservesthanispubliclyavailable.

CompaniesInvolvedintheTarSands Companiesinboldappearonbothlists

BaytexBP

CanadianNaturalResources

CenovusEnergy

Chevron

Enbridge

Encana

Exxon

ImperialOil

Nexen

RoyalDutchShellCompany

StatoilASASuncorEnergy

TranscanadaCorps


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