UTAS increases direct fossil fuel investments ten-fold

Hobart, (10/02/2015): Amidst growing concerns about the impacts of climate change the University of Tasmania’s investments in fossil fuel companies grew ten-fold over an 18 month period. The data was released after two separate Right to Information requests by members of Fossil Free UTAS.

On 31 December 2012 the University of Tasmania directly held $141,000 of equity in one fossil fuel company (Woodside Petroleum). By 30 June 2014 this had grown to six companies and more than $1.7 million.

Alistair Deane, spokesperson for Fossil Free UTAS, said that the university was heading in the wrong direction with its investments.

“As climate change threatens our future, we need our universities to take action and be part of the solution not the problem. UTAS has the opportunity to be a leader by becoming the first Australian university to divest entirely from the fossil fuel industry.”

“Why UTAS is increasing its exposure to fossil fuels is baffling from both a moral and financial standpoint,” said Mr Deane.

“Recent research suggests that 80% of current fossil fuel reserves need to stay in the ground if we are to stay within the internationally agreed climate change limit of 2 degrees.”

“The world’s largest economies are taking active steps to reduce their reliance on fossil fuels by 2030 and universities across the world are moving towards fossil fuel divestment.”

Mr Deane argued that fossil fuel industries were a financially risky investment for the University of Tasmania.

“Research from global financial consultancy Mercer, has shown that a divested portfolio outperforms standard portfolios over time.”

“Mercer found that the majority of investors are underestimating the risks of fossil fuel assets becoming stranded in an increasingly carbon-averse market place.”

“This research is supported by the clear structural decline in fossil fuel companies that is taking place now.”

“Simply put, fossil fuels are a bad investment.”

Mr Deane concluded that the University of Tasmania should be reversing course.

“This is the only way to ensure the health of our planet and of the university’s investments in the long run.”

Download briefing notes:

Briefing_Note_Fossil_Free_UTAS_FEB.2015_.pdf

Download RTI docs:

http://cdn-src.tasmaniantimes.com.s3.amazonaws.com/files/FFUTAS_RTIs_complete_personal_inf_redacted_11.02.15.pdf

Send a letter to Professor Peter Rathjen, Hon. Michael Field AC and Professor David Sadler here:

http://act.350.org/letter/divest_UTAS/

• Cassy O’Connor: Greens Urge UTAS to Offload Fossil Fuel Shares “RTI documents obtained by ‘Fossil Free UTAS’ reveal a disconnect between what UTAS says through the ethical and scientific rigour of its teaching, and what it does in order to increase the size of its investment portfolio,” Ms O’Connor said. “The students attending UTAS today and in the future are the generations who will confront the frightening reality of global warming, yet the esteemed institution which provides their further education is investing in companies which are contributing to rising fossil fuel emissions.”