Procedures for Divestment Requests (5.19)

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This online version is for convenience; the official version of this policy is housed in the University Secretariat. In case of discrepancy between the online version and the official version held by the Secretariat, the official version shall prevail.

Approving Authority: Office of the President

Original Approval Date: November 14, 2024

Date of Most Recent Review/Revision: N/A

Administrative Responsibility: University Secretariat

Parent Policy: 5.19 Divestment Requests Policy

1.0 Interested/Impacted Group(s) may submit a request for Divestment related to the University’s investments to the Board of Governors.

1.1 Requests for Divestment may only be initiated by Interested/Impacted Group(s) (as defined in the policy 5.19) and must adhere to the following requirements:

1.1.1 A submission that clearly articulates the concerns and rationale for the requested Divestment, ensuring alignment with the University's fiduciary duties and investment policies.

1.1.2 The submission must be accompanied by a petition of at least 400 individual signatures, with a maximum of 90% of signatures of the 400 from students and a minimum of 10% of the 400 from staff and/or faculty.

1.1.3 The Divestment request must be submitted to the AVP, Governance & Policy which will ensure that the above requirements are met, by verifying signatures and constituency as appropriate.

1.1.4 Submissions that meet the above requirements, as determined by the AVP: Governance and Policy, in consultation with the President and Vice-President: Finance and Administration, and other members of the Executive Leadership Team, as necessary, will be forwarded on behalf of the petitioners to the Board of Governors for review.

1.1.5 The Board of Governors will review the submission and decide as to what further action, if any, is warranted.

2.0 Review Process

2.1 If the Board decides that further action is required, it may designate a committee for further review and consideration of the request.

2.2 The factors that the delegated committee may consider include, but are not limited to:

2.2.1 Consistency with existing University policies or objectives;

2.2.2 Materiality of the request to the overall investment portfolios; materiality refers to the extent to which the requested Divestment would impact the portfolio's financial performance, including potential changes in returns, risk, and overall investment strategy.

2.2.3 The Committee should assess the extent to which revenues are derived from the activity of concern. Other factors could include an assessment of an entity’s overall ESG factors in the context of an activity under review.

2.2.4 Whether there is duplication of past requests and/or whether there have been material changes that would warrant reconsidering past requests. For greater certainty, past requests may be reconsidered if there have been significant changes to underlying factors, market conditions, or social/environmental contexts.

2.2.5 Whether the issue is better addressed using other levers available to the University.

3.0 Potential Actions of the Committee

3.1 When delegated to a committee for review, the committee will draft a response for the Board detailing its recommendation(s). Recommendations from the Committee may include, but are not limited to:

3.1.1 Suggestions for ensuring the relevant environmental, social, and governance (“ESG”) factors are considered in the investment process;

3.1.2 Arranging for a delegation representing the Interested/Impacted Groups that submitted the request to present to the Board for further consideration;

3.1.3 Coordinating an in-depth consultation process to facilitate robust dialogue and thorough examination of relevant perspectives, ensuring comprehensive engagement with stakeholders;

3.1.4 Suggestions for alternative, non-investment related approaches; or

3.1.5 No further action.

3.2 Following the review process conducted by the delegated committee, a full report will be presented to the Board for their decision.

4.0 Board Considerations and Actions

4.1 As part of the decision-making process, the Board has several options available, such as, accepting or declining the recommendations, deferring the decision, requesting additional information, seeking further consultation (e.g. within the community), or proposing modifications to the recommendations.

4.2 Decisions of the Board, along with the rationale for decisions, will be publicly reported on the University website.

5.0 Incomplete or Unsuccessful Submissions

5.1 If a submission does not meet the above requirements or is unsuccessful for consideration, the University Secretariat will notify the petitioners and provide a summary of the decision, or the steps required to correct any deficiencies.