It’s time for universities to reinvest in our communities

After eight long years of organization by SFU350 students, Simon Fraser University Finally Committed To Total Divestment From Fossil Fuels November 1st. The announcement comes two years after the University of British Columbia committed to divestment in response to a similar six-year student campaign.

From a fledgling movement a decade ago to one that sees institutions as large as Harvard University and Canada’s second largest pension fund join forces, we have come a long way in stigmatizing the fossil fuel industry and creating the political will necessary to achieve climate justice.

But when examining the investment portfolios of our universities, we realized that divestment is not enough to lead us to the just and sustainable future that we want and need. Fossilfree money full of banks lending trillions to fossil fuels, tech companies like Amazon that has been denounced for allegations of abusive working conditions and tax evasionand mining companies that have been linked to murders and assaults of land defenders around the world.

This is far from the “responsable investment“Our universities and their fund managers promised us. Climate justice means that we cannot simply move from fossil fuel extractivism to green extractivism. We want our universities to be part of real solutions.

That is why we launched the Towards to Personnel endowment campaign, which urges UBC and SFU to take the next step and actively reinvest in our communities. Community reinvestment It means investing capital, often from funds that have been released from fossil fuels, in projects that provide social and / or environmental benefits to local communities. Community reinvestment prioritizes meeting community needs, while generating modest returns for investors.

SFU students gathered on September 21, 2021 for SFU to declare a climate emergency and divest. Photo by Sherry Young

We all know that our communities are suffering. The pandemic has added to long-standing conditions of social neglect, ranging from the opioid epidemic to rising wealth inequality, a housing and homeless crisis, and brutal policies of systemic racism and colonial violence.

The climate crisis adds to all of this, putting many in a regular state of uncertainty and precariousness while putting the most vulnerable at risk. The heat dome, which killed 595 people in BC last summer and the recent catastrophic floods are just a taste of what’s to come.

Our universities say they care about these issues. UBC is committed to United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), declared climate emergency and developed a Inclusion action plan and a Indigenous Strategic Plan.

SFU has also established a Aboriginal strategic plan and a Strategic plan for community participation and recently enrolled in the Canadian Investor Statement on Climate Change. The latter expresses support for a just transition to a net zero economy that builds on indigenous perspectives, promotes indigenous economic opportunities, and encourages business practices that align with the principles of the UNDRIP.

Opinion: We’ve come a long way in stigmatizing the fossil fuel industry and creating the political will necessary to achieve climate justice, write @MichelleRMarcus, @cheangrchl and Abigail Herd. #Climate justice #JustRecovery #divest

So instead of investing in the same corporations responsible for our pressing social problems, why not invest in local community organizations that are trying to solve them? If UBC and SFU commit to allocate only 10 percent of each school endowment funds and working capital for community reinvestment in British Columbia, which would mean $ 400 million injected into the local economy, opening the door to new affordable housing projects, community-owned renewable energy, worker cooperatives, social enterprises and Sustainable local food systems.

SFU students and alumni celebrating their divestment victory on November 10, 2021. Photo provided

For example, our universities could invest in affordable housing and green energy projects through Vancity Community Investment Bank Impact GIC, local businesses in BC through community investment cooperatives, and cooperatives driven by a purpose like SolShare, which develops community-owned solar projects.

Rather than prioritizing short-term financial returns at the expense of our communities, these investments would contribute to improving the local community by creating jobs, strengthening local self-determination, and building a vibrant social economy positioned to sustain generations. future.

These funds could also go to support communities that have long been excluded and harmed by our financial system, including indigenous, black and racialized communities, the poor, people with disabilities, and immigrants.

It will be essential that these investments are non-extractive. This means that social purpose must take precedence over financial returns, and organizations must have enough money left over after paying interest to grow their organization and generate wealth in their community. By doing so, we can transfer economic power and equitable forms of property into the hands of the people.

Community investment is not a new concept: dozens of universities in the United States They have already invested in community loan funds, community bonds, and community development finance institutions.

For example, in 2017, in response to the student advocacy, the University of New Hampshire invested $ 3 million in the New Hampshire Community Loan Fund, which offers loans, equity and assistance to underserved people.

Just a couple of years ago, the Concordia University Foundation developed an impact investment policy, pledging to allocate 10 percent of funds to impact investing, with a special focus on student-led social enterprises and local Quebec businesses.

We believe that UBC and SFU can not only follow these examples, but can also do better by including community members in the process and ensuring that investments truly prioritize social purpose over financial performance.

Our universities have a responsibility to serve the community at large. This is central to their basic mandates as public institutions and their stated missions to “Promote a fair and sustainable society” and be a world leader in community engagement. By intentionally choosing to invest in our local communities, UBC and SFU can take the next step in advancing real climate justice.

Reference-www.nationalobserver.com

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