Bowing to pressure from student-led group E-Butt, the University of Toronto has announced that its investment arm intends to sell its $10 million worth of tobacco stocks. U of T president David Naylor revealed the decision in a March 26 letter to Governing Council.
“What’s interesting is that this started as a student-run initiative. I think this is what David Naylor found powerful about it,” said administration spokesperson Rob Steiner.
The divestment is to be executed as advised by the President’s Advisory Board, which was set up last summer to specifically consider E-Butt’s petition. The advisory board’s report also recommends a policy that prohibits the university from investing in the tobacco industry in the future.
The University of Toronto Asset Management Corporation was set up in 2000 to manage the university’s stock holdings and pension plan. On Dec. 31, 2006, UTAM owned $2.5 billion worth of stocks, including $10 million in three tobacco majors.
“I am very thankful that U of T has taken this monumental step, becoming the first Canadian university to lose its tobacco investments,” said E-Butt president Taylor Ward.
“This is a powerful message to the students, and shows now that the university actually cares for good health,” Ward said. Despite the divestment, however, he feels the university still has a long way to go.
The report defines a tobacco company as one that makes 10 per cent or more of its revenue from tobacco products, and says the “restriction” should also apply to pooled funds where 10 per cent or more of the pool is invested in tobacco stocks.
“Starting this fall, we will be working with lawyers and investment bankers to draw up a plan for the university to divest its pool funds as well,” said Ward.
Ward expects E-Butt to make progress at other Canadian universities as well. The group will work on opening chapters at McGill University, Queen’s and UBC. “We will not stop until there remains not a single institution in Canada that invests with tobacco companies,” he said.
