University of Toronto's school of the environment bans fossil fuel funding

University of Toronto's school of the environment is banning all donations and sponsorships from fossil fuel companies as part of its commitment to divest from these industries by 2030. 

The guidelines announced Sunday prohibit financial support for activities, scholarships and infrastructure projects tied to fossil fuel firms. However, individual faculty members will retain the freedom to accept research funding from these industries without facing any institutional penalties. 

“Together, these principles allow the School of the Environment, as an academic unit, to dissociate from fossil fuel companies, while protecting the academic freedom of our faculty and students,” the announcement read. 

Advocates and experts stress that while the decision is a positive step, it’s not enough. 

Erin Mackey, a recent graduate and co-founder of Climate Justice UofT said for the university to truly lead on climate issues, it must completely sever ties with the fossil fuel industry, halt fossil fuel financing for climate research and divest from weapons manufacturers.

“We know the fossil fuel industry is the main perpetrator of the climate crisis,” Mackey said. “They shouldn’t be partnering with universities that are trying to develop solutions to that very crisis.”

Earlier this year, Climate Justice UofT released a report detailing the fossil fuel industry's financial contributions to climate research at the university. The report reveals that between 2008 and 2018, the fossil fuel industry and its affiliates donated more than $64 million to the University of Toronto. Students have rallied and occupied the university campus to pressure the institution to divest from fossil fuel companies.

Although the school’s recent statement did not acknowledge that student pressure was responsible for the new guidelines, Mackey hopes this is a step forward that also highlights the power and determination of students in driving change.

Paul Hamel, a professor of medicine at the university, also expressed mixed feelings about its fossil fuel divestment efforts. “There’s an optimistic part to this,” Hamel said. “It’s a victory, and we should be pleased with that. It sets an example and provides an avenue for others to engage in similar processes.” 

But Hamel is concerned about the transparency of the university's divestment claims. In 2021, the university announced its commitment to divest from fossil fuel investments in its $4.0 billion endowment fund, effective immediately. But Hamel notes the university has failed to provide sufficient evidence to substantiate this change.

Hamel also highlights the broader implications of corporate donations on academic integrity, noting that while the university claims to maintain a firewall between donations and academic activities, the reality is that donations often align with the interests of donors.

The decline in public funding for higher education in Ontario has worsened the situation, he added. Since the provincial government is now the third-largest source of funding for the university, trailing behind tuition fees and international student revenue, this has compelled universities to seek financial support from corporate donors, many of whom are affiliated with industries linked to fossil fuel extraction, banking and other environmentally damaging sectors.