Vancity Credit Union is a prominent financial institution on the west coast of Canada, known for supporting community development and for offering a variety of ethical investments. Up until recently however, their ethical funds (ethical mutual funds) all contained a certain percentage of investment in fossil fuels. Now, the IA Clarington Inhance Global Equity SRI Class mutual fund is entirely divested from companies involved in the production of fossil fuels, having sold off the 3% of its holdings that remained in the oil and gas sectors. This is a first in Canada!
Due to the dramatic fall in world oil prices, current market dynamics create an opportunity for the fund to unload fossil-fuel investments, which are volatile and risky. Rick Sielski, Vancity Chief Operating Officer, describes it as a “convergence around what makes sense from a risk/return investment for our members while satisfying their need to really put their money where their heart and values are." This move by Vancity forms part of the broader carbon divestment movement.