The University is currently undertaking consultations as part of the review of its Socially Responsible Investment (SRI) policy. Established in 2013, the SRI policy accounts for environmental, social and governance factors, and outlines the aims and parameters of the University’s investment portfolios. The review comes after months of student demands for the University to divest from weapons manufacturers which are involved in Israel’s current siege in Gaza. 

The University also operates a Long Term Investment Pool (LTIP) and a General Cash Float (GCF) for shorter-term investments. The LTIP is a financial structure which determines investments on behalf of the University, while the “GCF is a portfolio of cash and fixed interest investments, used to manage the University’s Treasury activities.”

According to a University spokesperson, the University, “does not choose individual stocks’ but rather, ‘appoints investment managers to manage investments on its behalf.” These managers  “must comply with the ANU SRI policy.”

The University spokesperson notes that ANU was, “one of the first universities to adopt an [SRI policy].” However, this was following student pressure in 2013, demanding the ANU divest from fossil fuel companies. At the time, the student campaign Fossil Free ANU criticised the policy for being “extremely vague”, a criticism which has been echoed by current divestment movements on campus.   

The University spokesperson explains that, “[t]he policy seeks to ensure a socially responsible approach is maintained in all decision making on ANU investments, and that potential social harm or benefit is considered as part of investment activities. This includes avoiding investment opportunities that are likely to cause substantial social injury.”

However, what constitutes a social injury remains unclear, largely because the definition for social injury remains ambiguous. 

In its 2023 SRI Investment Report, the University noted its ambition to, “balance a strong commitment to socially responsible investment with a fiduciary responsibility to meet its obligations in respect of both superannuation liabilities and endowments.”

ANU’s current SRI Policy applies negative screens when structuring its investment portfolios. As it stands, this negative screening applies to companies who acquire 20 percent or more of their revenue directly from coal, gambling, pornography and tobacco. According to the University spokesperson, “‘[t]he policy also sets targets for lower carbon intensity across the portfolio compared to the benchmark.”’

These companies are accordingly avoided when structuring the University’s investment portfolio. The University is seeking consultations regarding what additional screens, if any, are necessary. 

An eForm is currently open to the ANU community, allowing students and staff to provide any relevant feedback regarding the SRI policy. It remains available for responses until Wednesday 17 July. A virtual town hall meeting on Zoom will also be held Tuesday 16 July at 3pm. 

The University explained, “This review process will be overseen by a working group drawing on broad representation from across ANU”. The University spokesperson also notes that the findings of the review will accordingly be, “presented to ANU Council for consideration at its August meeting.” 

However, whether considerations by the ANU council will result in the endorsement of student and staff demands remains unclear. ANU Council meetings are confidential and meeting minutes are not released to the wider ANU community.  

The University is also seeking input regarding what positive investments may be made. The University spokesperson notes that ANU endeavours to increase its weighting to “‘[leading] gender equality, biodiversity risk and energy transformation… companies over time and relative to the respective benchmarks.”’

In recent months, particular concerns have been raised by pro-Palestine movements of the ANU community regarding the University’s military investments and the need to divest. According to a disclosure log, these include stocks placed in Boeing ($143,000), Lockheed Martin ($273,000), and Northrop Grumman ($50,000). 

These manufacturers are also tied to Israel’s current assault in Gaza, where some estimates predict a death toll of 40,000 Palestinians.   

Calls have been made by the ANUSA Black Indigenous People Of Colour (BIPOC) Department, among other groups on campus, to encourage the ANU community to contribute to the SRI Policy review. In an Instagram story, the BIPOC Department stated that responses, “will show the ANU what their students and staff care about – we do not want our student fees to fund weapons and genocide.” 

“We cannot stress how important it is for our community to make our voices and values heard at every opportunity.. Free Palestine.”

However, other groups such as Students for Palestine have rejected the consultation processes and have instead called for a Special General Meeting. The meeting would aim to allow students to, “vote on a motion calling the ANU to cut all ties with arms manufacturers that sell to the Israeli Defense Force.” In a press release, leading member of the group Nick Reich said, “The SRI consultation process is a clear attempt by the ANU to rehabilitate its public image without addressing any of the major demands raised by student protestors. It is not only too late but far too little.” 

Students for Palestine is commonly associated with Socialist Alternative, and is distinct from the ANU Gaza Solidarity Encampment. 

The Encampment has encouraged staff and students to participate in the consultation. 

The University spokesperson notes that while ANU prides itself on being a, “leader in socially responsible investment our community’s expectations around what socially responsible investments mean in practice are evolving and expanding.” 

The University noted in an issue paper that, “recent advocacy from [the ANU] community has helped to draw attention to a lack of clarity in the SRI policy on revenue derived from the manufacture and sale of technology with military applications.”Among this also includes investments in generative AI. 

It further notes that “[t]his is not just an issue for ANU but across the university sector. Changing community sentiment requires new considerations for the University’s investment portfolio.”

Woroni will have live-coverage of the virtual town hall meeting on Tuesday 16 July at 3pm. Find us at Woroni on X (formerly Twitter) to follow the updates.