Divesting the University of Alberta’s Endowment

Description

Divesting the University of Alberta’s Endowment: Abstract

This case examines the ongoing pressure from the Climate Action Coalition for the University of Alberta to divest from fossil fuels and the role of the AVP in this debate. The Climate Action Coalition began in 2020 as a movement involving students, faculty, and staff members at the University of Alberta to protest the continued investment of the Investment Pool’s $1.73 billion in the fossil fuel industry. This complicated debate centres around the university’s perceived moral and financial responsibilities. The case also looks at alternative ESG investment possibilities that offer a suitable middle ground between stakeholders. The AVP must create a strong plan to satisfy the needs of both the university and climate activists and end this ongoing conflict. Students are asked to imagine themselves as the AVP and to weigh the pros and cons of full divestment and of alternative options in the development of that plan. The plan should align with a fiduciary duty to gain the support of the investment oversight committee, senior administration, and Board of Governors.

Teaching objectives

The case is intended to enable students to do the following:

• demonstrate critical analysis skills;
• understand the importance of weighing financial and moral considerations when formulating a business model.

Additional information

Teachers’ notes are available for university teachers only. Please contact the HEC Montréal Case Centre.