THE LAST WEEK of November saw UCL’s Ethical Investment Week, with College Council Chair Sir Stephen Wall speaking on the progress of ethical investment at UCL. For Disarm UCL it was another success in their long-running campaign to persuade College to divest its shares in arms companies and adopt a holistic ethical investment policy. However, the debate also revealed College’s ambiguous stance on the matter, and concerns were raised that UCL’s bew investment policy, due for launch in January, will be only a mere nod in the right direction.
No blanket ban
Plans are for the assessment of investments on a case-by-case basis, rather than a blanket ban on investments in arms companies. Although it seems likely that such a policy would mean UCL divests its notorious shares in Cobham (see Cheese Grater issue 12), there would be nothing to stop similar investments being made in the future.
In March Provost Malcolm Grant admitted that it was necessary to extend UCL’s current guidelines on socially responsible investment which so far only explicitly bans investment in tobacco companies. The Provost proposed that UCL adopt the ‘Oxford model’ by setting up a separate ‘Ethical Investment Review Committee’ to take responsibility for the issue. According to minutes from College Council the parameters for investment set by this committee might be either ‘negative’ (advising the avoidance of investments in particular areas) or ‘positive’ (advising the active seeking of opportunities to invest in areas seen as concordant with UCL’s mission).
No say for students
There has still been no for mal consultation with students, surprising considering the vocal nature of the student-led capaign to disarm UCL. After pressure from campaigners last year to investigate the possibilities of ethical investment, a report was produced by UCL alumnus Mr Edwin Glasgow QC and Sir Stephen Wall, advising the Provost on UCL’s future investment policy. However this report has been labelled confidential and remains unavailable to students.
Disarm UCL are sceptical about the effectiveness of the ‘Ethical Investment Review Committee’. The committee consists of two lay members, two academic staff and one student. Disarm UCL and Amnesty International are pressing for equal student representation which seems appropriate since the committee was established in response to long-term pressure from students. The activities of the EIRC are strangely secretive and it is unclear whether they have met at all since being established early this year. The committee certainly did not report to College Council in June, as it was mandated to do in March. Even if the committee does exist, there is currently no student representation at all as the Sabbs confirmed that they hadn’t decided who would be appropriate, although the job it is likely to fall under the remit of the Environment and Ethics Officer. Education officer Ed Steward has said it would unlikely that the EIRC would be an open committee and according to its terms of reference it is only mandated to meet twice a year. As ever, bureaucracy is the enemy of action at UCL
No positive investment
Disarm UCL have repeatedly pointed to evidence that suggests ethical investment is not only equally but more profitable than investments without ethical criteria. UCL has admitted that there may even be a financial penalty for continuing investment in companies that alienate staff and students. According to a recent report by the UN and Mercer, ethical investment does not bring a performance penalty and as well as offering companies a moral high ground they also bring in profitable returns.
While college continues to sit on the fence, shares in Cobham have continued to pump cash into the development of weapons and defence systems. Rather than seizing the chance to be a true ‘global leader’, by delaying the decision UCL is now lagging far behind divestment at Oxford and Cambridge, whose arms shares the Provost once used to justify UCL’s. The new policy could make a difference if College not only divests its arms shares but adopts a positive ethical investment policy that actively seeks out companies to give some some substance to UCL’s ‘global mission’.
For more information about Disarm UCL and their campaign visit disarmucl.blogspot.com.