The University of Cape Town (UCT) Council has agreed, in principle, to divestment from fossil fuels, including divesting its endowment formally from the fossil fuel industry.
This approach will put back into society, the environment and the global economy more than is being taken out, the council says.
This decision will be executed in a responsible, transitional manner. Firstly, through the immediate divestment from internationally exposed fossil fuel investments and immediate investment in renewable energy and/or green economy instead of new investments in fossil fuels
Secondly, in the local economy, UCT will work towards achieving a goal of being net-positive by 2030.
By divesting from fossil fuels, the university is further amplifying its position and signalling to policy makers the need to act now on climate change.
“This decision by the council exemplifies the university’s deep commitment to promoting the development and use of clean, sustainable and renewable energy. It is also part of how we make long-term investment decisions that support our teaching and research mandate as a university, says UCT finance executive director Vincent Motholo.
“We do not believe investments in fossil fuel are prudent. With the growing threat of climate change to the environment, drastic actions are needed and UCT needs to be part of the climate crisis solution.”
The decision by the university is a commitment to long-term sustainability, and part of its Vision 2030. It is part of a bigger vision, process and journey to look at how UCT can be more sustainable.
The university is joining many organisations in looking at its investments carefully and how it can continue the commitment to social justice, responsible investing and environmental sustainability.