The global movement Go Fossil Free may start to gain attention in Australia as key universities review their investment policies.
By KIRSTI WEISZ
Universities across Australia are being pressured to go fossil free as part of a global campaign on ethical investments, despite the disapproval of the Federal Government.
The Australian National University (ANU) decided to dump its investments in seven resource companies partly because of a campaign from Fossil Free ANU, a group that is pushing for an end to investment in fossil fuels such as coal, oil and gas.
The campaign, as well as the University’s Socially Responsible Investment Policy, led ANU to commission an independent review by CAER , an organisation that analyses investments in terms of the company's environmental, social, governance and ethical performance.
“Universities tend to have relatively progressive stakeholder groups, so it is not surprising that issues around environmental, social and governance are increasingly on the radar of university investment teams,” CAER CEO Duncan Paterson said.
ANU Vice-Chancellor Professor Ian Young told ABC Rural the university was not placing a blanket ban on fossil fuel investment, but would regularly reassess the portfolio.
"The university's position is a little bit different to some student activists who take a fairly narrow view that we shouldn't invest in any resource companies at all," Prof Young said.
"The university took a broader view than that, which was about social responsibility rather than simply saying you wouldn't invest in resource companies, many of which do great social good for this nation through employment and bringing prosperity to the nation, but they may also have some negatives."
ANU has come under fire by the Federal Government for its decision, with Prime Minister Tony Abbott saying the Government should be free to criticise "stupid decisions".
“Australia’s energy companies will be a very, very good investment for people who are sensible enough to see where their opportunities are,” Mr Abbott said in a Melbourne conference.
National Tertiary Education Union ACT division secretary Stephen Darwin lauded the ANU decision, saying recent "attacks" by Treasurer Joe Hockey and Education Minister Christopher Pyne were unreasonable.
"ANU management has shown courage, thoughtfulness and a cool head in response to these attacks," Mr Darwin said.
The first to make a move on this issue in Australia was the University of Sydney, when an instruction was issued to halt further investment in Whitehaven Coal.
The university had been accused by Greenpeace, the NTEU and the indigenous community of violating its ethical investment policy when it invested $900,000 in Whitehaven Coal.
Fears Whitehaven Coal will disturb the environment and the region's alleged cultural heritage was part of the motivation for these groups to campaign against the university's investment.
A spokesperson from the University of Sydney said that the decision was not permanent but that it would be on hold while a review was conducted.
"Until the review is completed, no further commentary around the decision will be reported," the spokesperson said.
Greenpeace Australia Pacific welcomed the decision and said that by halting its investment, the university was acknowledging the negative impacts of coal investment on local communities and the environment.
"We haven't reached the end of the path yet, but the fossil fuel divestment movement has come a long way in a very short time," Greenpeace climate and energy campaigner Nicola Casule wrote on the Greenpeace website.
Monash University's investment policy is being assessed by the University's Council and Resources and Finance Committee.
A spokesman said the university used "large and reputable fund managers who have diversified investments across the economy".
"We do this to ensure that we meet the overall obligations and objectives of the university."
A Fossil Free Universities website has been established to mobilise students to take action against universities supporting coal and gas extraction. A campaign encouraging Monash to change its policies has been created by Fossil Free Monash University.
The global fossil fuel divestment movement started in the US when a number of students called on their universities to divest from coal and other fossil fuels. It also targets other institutions.
Arabella Advisors, which gives advice on how to invest or give money philanthropically for maximum "positive impact", said the movement had gained remarkable speed and reported that a total of $50 billion had been divested as of September this year.