Travis Fife: UC fossil fuel divestment is step toward leading change

As the Centennial Campaign video presentation came to an end a few weeks ago in Royce Quad, the message was clear: UCLA is not just a university, it is a beacon other institutions can look to as a guiding light.

The university projected a similar message in November 2013, when it announced the first project in the Grand Challenges initiative, which consists of six projects the university will launch to address “society’s most pressing issues.”

The university said in a statement that the project, “Thriving in a Hotter Los Angeles,” aims to come up with ways Los Angeles can use exclusively renewable energy and local water by 2050, making the city “a global model for urban sustainability.” UCLA hopes to not only change Los Angeles, but set an example for the rest of the world to follow.

The problem, though, is that preserving the idea of universities as role models tasked with setting the right example could harm the bottom line. And that’s a problem that the University of California Board of Regents could face as it investigates the possibility of divesting from the UC’s holdings in fossil fuel companies.

Currently, the UC is creating a task force to look at creating a holistic investment plan more consistent with the principles of environmental, social and governance. Investing by these principles means that, while it will still look at the financial benefits of its investments, the UC will now try to make sustainability a primary concern. One change the task force will consider is divesting from the UC’s holdings in fossil fuel companies.

Though the process is still in its beginning stages, the topic of fossil fuel divestment offers UCLA and the UC an opportunity to send a powerful message about its commitment to mitigating climate change.

The UC has already taken a big step in forming a task force to make its investment portfolio more sustainability friendly. But, it shouldn’t treat fossil fuel divestment as just one piece in an investment portfolio. Rather, it should use the topic as a unique opportunity to directly oppose fossil fuel companies and demonstrate how seriously our universities take climate change. This is particularly important in light of the fact that the extraction and burning of fossil fuels is one of the biggest factors influencing climate change.

The goal of divestment shouldn’t be to financially hurt fossil fuel companies. It should be to create the impression that the activities of fossil fuel companies stand contrary to the university’s pledge to renewable energy. If UCLA’s first grand challenge is to create ways for Los Angeles to use only renewable energy, then that starts by retracting financial support from companies that work directly counter to that goal.

In the months to come, the task force will wade through the UC’s countless investments to evaluate their consistency with sustainability goals and consider possible alternatives. This will leave the UC with complicated decisions about how to balance its focus on sustainability with potential profit losses that may come from a new investment strategy.

Currently, fossil fuel holdings make up $39 million out of the $7.9 billion UC endowment, meaning they represent less than half a percent of the total endowment. While getting the UC to overhaul it’s entire investment strategy with a focus on sustainability will be a complex process, fossil fuel divestment offers an immediate first step.

Other universities, such as Stanford, have already given UCLA a model to follow by announcing their plans to divest. These other incidents of divestment, along with many student campaigns happening across the country, have given the issue national attention, offering the UC a platform to stand on with other universities opposing fossil fuel companies.

The UC system, and UCLA in particular, claims to be a leader in confronting the world’s biggest problems. But in regards to fossil fuel divestment, we have passed the torch to other universities to lead the way. Now it’s time for the UC to catch up.

Email Fife at tfife@media.ucla,edu or tweet him @fifetravis94. Send general comments to opinion@media.ucla.edu or tweet us at @DBOpinion.