Too Close for Comfort?

Exploring the Cozy Relationship Between the Fossil Fuel Industry & Dalhousie University

By Kaleigh McGregor-Bales & Megan Tremblay

A Report prepared for the Nova Scotia Public Interest Research Group

TABLE OF CONTENTSSECTION 1: BACKGROUND4Higher Education in Canada- A Brief History4The Modern Knowledge Economy4Declining Government Support: Neoliberal Ideology Reaches Campus5The Rise of the Corporate University5Industry-Academic Relations5Government Funding Stipulations7Managing and Administering the Managers and Administrators Who Manage and Administer University Operations8Board Member CEOs8Accountability and Student Involvement8The Ethics of Endowments9Fossil Fuels on Campus9SECTION 2: GOVERNANCE & DECISION-MAKING12Dalhousies Board of Governors12Dalhousie Senate13President & Senior Administration13Student Decision Making13Funding Priorities14SECTION 3: FOSSIL FUEL INDUSTRY ON CAMPUS15Funding for Programs15Got the Credentials?15Shell Experiential Learning Fund (SELF)16Fundraising: Dalhousies Bold Ambitions Campaign18Imperial Oil18Potash Corp20Pensions and Endowments20Background21Fund Manager Portfolios24Banks Financing the Tar Sands25The Corporations27STARS (Sustainability, Tracking, Assessment & Rating System)27SECTION 4: CONCLUSIONS & RECCOMENDATIONS30For students31For Dalhousie University32REFERENCES34Appendix A Decision-Makers at Dalhousie40Appendix B - Resources for Future Work42Appendix C - Resources on Divestment44

SECTION 1: BACKGROUND

46

There is currently a democratic deficit in our society. The federal and provincial governments prioritize the well-being of big polluting corporations over the well-being of both people and the planet. On university campuses, corporate interests carry a significant and disproportionate amount of power over university affairs, while students lack representation and decision-making power.

In identifying the historic changes that universities have undergone and the growing corporatization of campus space, we seek to shed light on how our campuses are impacted by academic-industry connections. Beginning with the advent of the modern knowledge economy in universities and the exploitation of this knowledge by the federal government and corporate interests, this report will discuss why the increasing industry-academic connection is problematic. Following a discussion on how universities have begun to receive and invest their funds, this report will specifically investigate Dalhousies investments and fundraising campaigns, and expose the cozy relationship between the fossil fuel industry and Canadian universities.

Higher Education in Canada- A Brief History

In the past one hundred years the structure and purpose of universities has shifted dramatically. Initially, Canadian universities were exclusively a place for upper-class men to receive an education.The focus was academic rather than pragmatic, though the place was socially and economically exclusive. The function and structure of, as well as access to, universities in Canada changed significantly following World War II. During the war, there was a rise in focused research at universities in order to meet national wartime objectives (Franklin, 2000, p.19). This trend continued after the war, as research became a core purpose of universities. The potential worth of this research became particularly apparent after the post World War II economic boom. This period marked the beginning of economic globalization, and business and government saw the society-wide value in funding higher education (Arsenault, 2007). The value they saw was seated in military pragmatism and capitalist production, rather than an ideal of education.

In 1966-67 the federal government increased spending on post-secondary education by 400%, paying out $400 million to universities, a dramatic increase from the $99 million in funding the previous year (Tudiver, 1999, p.24). In addition, the shift in Canadas economy from a resource-based to a knowledge-driven economy both increased university attendance and made universities a target for corporate intervention (Conlon, 2000, p.147).

The Modern Knowledge Economy

The government and private-interests, which had typically operated outside of and remained separate from public universities, began to realize the potential profit of commercializing the results of university-based research. Canadian universities have been drastically reorganized as a result of an increase in external influence over the management of university education, including how it receives funds and what is included in the curriculum. Transitioning away from a space of learning, universities have become a place to produce research that has market value. Knowledge is no longer treated as an end in itself; its merit is now distinguished by its practicality in the real world. Comment by Lars B: This can also be said of applied student research and participatory action research as methodologies. The pursuit of knowledge for intrinsic value has also led to the critiques of the ivory tower we hear regularly.

Declining Government Support: Neoliberal Ideology Reaches Campus

The economic changes resulting from neoliberal globalization in the 1980s, which brought sweeping privatization, deregulation, and de-funding of public institutions, played a major role in causing the corporatization of universities. Canadian universities suffered when the federal and provincial governments withdrew financial support as part of the neoliberal agenda. In the 1990s, federal and provincial governments further cut post-secondary education funding. Universities had to cope with reduced financial support from the public sphere (Eastman, 2007). During this period, tuition fees increased by a national average of 126% and led to a rise in the average student debt from $8000 to $25,000 (Conlon, 2000, p.148). But raising tuition fees was not enough, and universities were forced to seek out other sources of funding. The governments funding cuts allowed and even necessitated industrys stepping-in; and as a result the power to control and influence research, was transferred from the public to the private sphere.

The Rise of the Corporate University

Universities attempted to deal with a loss of public funding by seeking out private sources of funding, embracing corporate management principles (Cote & Allahar, 2011, p.91) and becoming more entrepreneurial.

Dominant market ideology asserts that the marketplace exists to make profit. Corporations and the government increasingly saw potential for universities to become a profit-maximizing entity where new knowledge and technology could enter the marketplace.Comment by Lars B: What do you mean by market ideology? Do you mean neo-liberal economics? In which case, false.Comment by Lars B: If universities have also trained workforces, then this has also been true of graduates, not just knowledge.

Industry-Academic Relations

Various government sponsored reports,[footnoteRef:1] partisan think-tanks, and quasi-academic free-market consultants reported that publicly administered institutions were inefficient and greater corporate participation in universities was desirable (Conlon, 2000, p.147). Universities started to experience the financial benefits of being able to produce knowledge and technology in exchange for money (Bok, 2003). On the other end, corporations began to view universities as a pool of profitable knowledge and ideas that could contribute to the economy by conducting industry-specific research and forming spin-off companies[footnoteRef:2] (Metcalfe, 2010). [1: The Corporate-Higher Education Forum (CHEF) was established in 1983. It included CEOs from companies including Shell, Xerox, the Royal Bank, Nortel and most University Presidents, with little academic representation. Appointed by Prime Minister Trudeau, the MacDonald commission released a report in 1985 recommending an economy wide shift to free trade and included that greater corporate participation in universities was desirable. The Prime Ministers Advisory Council on Science and Technology commissioned the Expert Panel on the Commercialization of Research. The panel was made up of leading figures from the high-tech industry, as well as both Canadian and American University Administrators with experience in the commercialization of research. There were no university researchers on the panel. In 1999 the Panel released the Report of the Expert Panel on the Commercialization of Research. The report recommended major changes to ensure the commercial potential of university research was privileged over not-for-profit research in the public interest, and tied university funding to the ability of a university to commercialize its research. Marketability became a prerequisite for research funding. ] [2: A spin-off venture, in relation to universities, can be defined in two ways, both of which require external involvement by a private corporation. First, a spin-off venture can be defined as venture that is created in order to commercialize intellectual property that a company commissions from a university researcher. This result is then given to the company (Simon Fraser University Innovation Office, n.d.). As a result, the university would receive some sort of compensation from the company such as a share of royalties (ibid). Secondly, a spin-off venture can be defined as a venture of which a university professor or faculty member is a principal founder. Such a venture depends on a technology developed at the university (ibid). Thus, universities are increasingly treated as an institution to be exploited by corporations who commercialize the product and make large sums of money.]

While the fossil fuel industry is investing more and more money to campus-based research there has actually been a decline in in-house research conducted by fossil fuel corporations. In the 1980s the research and development budgets of the four largest oil companiesExxonMobil, BP, Shell and Chevronwere an average of $6.4 billion (US) per year. By 2000 it had declined to $1.7 billion (US), and it has only increased marginally since (Washburn, 2010). In the United States, Maria Klawe and Telle Whitney[footnoteRef:3] noted that private industry has been abandoning applied research. As a result, these industries have turned to universities to conduct the applied research that they now lack capacity for (Klawe & Whitney, 2003, p.171). This has resulted in industry profiting from commercial research done at universities (Graham, 2000, p.26).Comment by Lars B: So, the critique is where the work is being done? Is it bad if corporations do this in house with their staff or only if they outsource to universities who they pay as staff? [3: Maria Klawe is Dean of Engineering and Applied Science at Princeton University and Telle Whitney is President of the Anita Borg Institute for Women and Technology.]

Corporate interests in universities, as described above threatens the integrity of universities. Corporations have an increasing amount of involvement and input over what is being researched and published (Renke, 2000, p.32). Universities are becoming economically motivated research institutions and less of a public learning space. This is extremely concerning for those who value more than the economic bottom line. One of the major issues with commercializing university knowledge for profit is that it is often done without any regard to whether or not it is ethical (Mintz et al., 2010, p.6). Funders provide stipulations when money is given to universities, and if these are not followed, funding can be withdrawn.

This corporate presence and control over research and curriculum shapes how faculties and universities function in the market economy. If a corporate donor has control over when and where funds are spent, and if faculties rely on those funds for their research, the results may favor that of private interests (Renke, 2000, p.32). This could give preferential treatment to outside influences and can hinder freedom of thought in academia (Klawe & Whitney, 2003). Further, significant analytical and empirical research has found that corporate-sponsored research is far more likely to favour the companys products and/or commercial interests compared to government or non-prot funded research.[footnoteRef:4] In addition, industry-sponsored research is linked to growing corporate control of academic data, delays on publication, increased secrecy, and reduced academic sharing of research data and materials.[footnoteRef:5] [4: Studies conducted by Blumenthal et al. (1996), Gtzsche et al. (2008), Mejia (2008), Lexchin et al. (2003), Barnes and Baro (1998), and Bero et al. (2007); found in Washburn (2010).] [5: Companies can require a delay in publication time, have the right to own the results or approve the final paper, or terminate trials. This has been shown to encumber open scientic exchange. Studies conducted by Campbell, Louis and Blumenthal (1998), Campbell et al. (2000); found in Washburn (2010). Companies can require a delay in publication time, have the right to own the results or approve the final paper, or terminate trials. This has been shown to encumber open scientic exchange. Studies conducted by Campbell, Louis and Blumenthal (1998), Campbell et al. (2000); found in in Washburn (2010).]

The overall structure of the university has come to resemble a private business more than a public institution of learning. Corporate funders are exerting their influence in the classroom, labs and hallways of universities (Klawe &Whitney, 2003, p.30). Universities are sustaining the profitability of these corporations by allowing company logos and values to infiltrate classrooms and campus space.

Government Funding Stipulations

When the Canadian government began to appreciate the potential for profit from investing in university entrepreneurship and research, it strategized and developed specific research funding agencies. The federal governments changing ideology led it to attach stipulations to its funds and encourage more marketable research and private donations.[footnoteRef:6] Government investment in Canadian universities has been increasingly focused on the development of new, cutting-edge technologies intended to maintain Canadas competitive advantage. The governments current funding is tied to economic interest of and the expansion of commercialization, innovation, and entrepreneurship (Madgett & Stoney, 2009, p.148; Doern & Stoney, 2009, p.6). [6: Approaches such as matched-funds programs where the government will match funding provided by private donors or targeted funding for specific programs or research in the national interest.]

Managing and Administering the Managers and Administrators Who Manage and Administer University Operations

The move to more scientific-research-focused universities, the increasing pressure to bring research findings to the market, and the growing need to compete for public funding and attract private funders have led to an explosion of non-academic staff and departments on campus (Washburn, 2005). Lawyers, accountants, regulators, and other staff are required to manage the new functions of universities, through which an entire meta-industry of university management has emerged.

Samuels (2011) elaborates:

After all, they have to have administrators and staff to run compliance offices, regulate research centres, oversee venture capital enterprises, and to undertake fundraising activities. They also need administrators to watch over the other administrators, and then they need staff to collect the information so that administrators can watch over other administrators, and of course, these institutions need computer staff to compile the data to give to the staff so they can give it to the administrator who gives it to another administrator, and once one gets to this level of complication, one needs a whole set of other people to see if everyone is following the state and federal guidelines, and the expansion continues to infinity.

This shift has dramatically changed the landscape of universities and has been a part of the shift away from learning towards turning a profit. Comment by Lars B: So, the central thesis I read in this is that universities are being treated as a vehicle for private investment due to their human capital for the value generated from the research results that largely accrue to the private sector. Given that most universities are non-profit foundations, they legally would be required to recycle most of these funds back into operational budgets. Is that such a bad thing? The critique I read is around the incentives this places universities under in seeking capital growth given their funding needs.

Board Member CEOs

One of the most dramatic changes that occurred in Canada during budget cuts of the 90s was the importance of fundraising to Canadian universities (Owram, 2004, p.177). Fundraising impacted the organization of universities in two main ways: by shifting the power between particular faculties and programs, and by changing the organizational structure into more of a corporate managerial style (Fisher & Atinson-Grosjean, 2002, p.452).

Universities became much more dependent on alumni and corporate funds. In order to manage these funds efficiently, the organizational structure of universities had to adapt. Budget committees were formed and administration became more managerial with a heavy focus on public relations to make the university image more attractive so that fundraising campaigns would be more successful. The importance of having a corporate-savy Board of Governors to oversee and encourage fundraising has led to more and more representation from the business community. This will be explored further in Section 2.

Accountability and Student Involvement

In their efforts to remain financially viable, universities must attempt to please their wealthy donors. Where the interests or expectations of the donors are in conflict with those of the students or the public, the wishes of the donors will likely win because the universities are reliant on their funding (Walker, 2008, p.47). In these circumstances the university risks compromising its values as an academic institution (Mintz et al., 2010, p.17). Because it is the administration making these decisions, the notion of accountability has actually led to a decrease in student and faculty involvement, and a growing environment of secrecy (Polster & Newson, 2009). Comment by Lars B: That needs to be explained further.

Universities and their administration are making decisions in order to remain accountable to corporate interests and their own interest in maintaining the financial bottom line. A conflict of interest occurs where the decisions made by a university administration for financial reasons are opposed to the educational mandates as set out by concept of the university as a public institution of higher education. (MacDonald et al, 2002, p.68). Why doesnt the university sever its ties with corporations? We return to the current economic status quo that has been pushed and maintained within our capitalist, neoliberal society. Comment by Lars B: This isnt a small thing, financial accountability and viability is also about fairness, even if publicly funded.

The Ethics of Endowments

The main form of external revenue a university receives is in the form of endowments.

These endowments can come from wealthy individual donors or companies. The university then invests the money so that it can use its profits as a source of finance in perpetuity. Comment by Lars B: watch language here, it is not a source of finance but one of revenue. These mean different things.

(What is an endowment?An endowment is a gift or funds donated to an institution that is invested and used as a source of income. A portion of the revenue from the investment is paid out every year to campus operations, programs or projects than can be specified by the donor. (Adapted from wearepowershift.org))How this money is invested can be challenging to determine as many universities keep this information confidential. Although some argue that investments are financial transactions disconnected from social, political, or environmental ramifications, this couldnt be further from the truth. In providing capital for...corporations...and environmentally destructive activities, investments support unethical corporations and destructive activities (Newton, 2000, p.419-420). Universities across Canada have been able to maintain unethical investment practices based on the argument of neutrality. Stating that they must not compromise their role as an educational institution, universities argue that by adopting a social conscience, they are putting academic freedom and neutrality at risk (Newton, 2000, p.421). An issue with this argument is that with such close ties to corporate interest, and a decreasing role in the public sector, universities cannot maintain their neutrality. This is due to the fact that profitability remains the guiding principle of investment practices, making it clear that universities have more than a corporate influence; they have a corporate consciousness (Kniffin, 2000, p.42). Comment by Lars B: investments can support is less biased language.Comment by Lars B: Profitabilty is one of a few principles generally. For example, consider risk. I would accept a lower profit at a lower risk for stability reasons, as would an endowment.

Fossil Fuels on Campus

Fossil fuel corporations have been a major part of the corporatization of the university described above. The role of the fossil fuel industry in universities takes many forms, including:

1. Donations to buildings

2. Funding for Research

3. Funding for Programs

4. Recruitment for employment and participation in co-op programsComment by Lars B: would we prefer they didnt? Students dont need to choose these jobs? Would we actually go so far as to ban certain companies from offering our students work? Would we feel the same way with an NGO with a clear agenda as well? We should if we carried this out to its fullest extent.

5. Advertising on campus

Universities in turn have their money from pension and endowment funds invested in these companies. This cozy relationship is highly problematic for many reasons.

Universities that advertise as being supposedly increasingly committed to sustainability are compromising their commitments by allowing fossil fuels to play a progressively larger role in their operations. Allowing fossil fuel corporations to promote themselves and their green-washing initiatives is contributing to a fossil fuel culture (Fenton, 2011). According to MacDonald Stainsby of Oil Sands Truth, "The idea behind doing sponsorships, buying up auditoriums and whatnot under the Shell, Suncor or Albian name is entirely part of normalization. It gives the image that [oil companies] are part of your community to create the impression that they are not only there, but that they will inevitably remain there and you need to accept that and find ways to work with them instead of shutting them down" (Fenton, 2011). The fossil fuel industry has a long history of denying climate science (Washburn, 2010, p. 40) and their marketing and recruitment on campus should be questioned.

The loss of public funding described above has made universities increasingly reliant on funding from fossil fuel corporations. They are left vulnerable to the whims and requirements that corporate funders can stipulate in order to provide funding. Furthermore, the academic integrity of universities is at risk from the increasing influence of fossil fuel corporations. An analysis of research partnerships between American universities and fossil fuel corporations showed that most contracts involved a loss of independence and academic self-governance for the universities (Washburn, 2010). The problem isnt necessarily inherently that the fossil fuel industry is funding research but whether or not the fossil fuel industry is using these research partnerships to advance a pre-scripted viewpoint to meet their financial gains (Arsenault, 2007).

Research that has social value, but which has less potential to generate commercial profits is not as likely to be conducted. According to Washburn (2010), in the area of energy research, this might include: studies comparing the relative social, economic, energy, and environmental consequences of various competing alternative-energy technologies; advanced research to measure carbon and other greenhouse gases emitted from various sources; or the development of effective carbon caps, taxes, trading, and measuring systems. The lack of research for the public-good of this nature being carried out independent of industry or special-interest groups is detrimental to the shift to green economy. Comment by Lars B: to a green economy. This hasnt really been established as a goal elsewhere in the paper, and is a fairly large premise.

The lack of transparency and accountability with regard to academic-industry partnerships is also problematic. There is no database or centralized national system that exists for tracking individual academic-industry partnerships and most universities will not release comprehensive information (Washburn, 2010).

The fossil fuel industry can see funding universities as a means of training for future employees. Dalhousie (2004) said the purpose of sponsored research funding was to train and educate highly sought after graduates for research, technical and management positions in the energy sector. This is in some regards a mutually beneficial relationship: universities receive funding for research and education, graduates are promised (gainful if not meaningful) employment, and the fossil fuel industry receives both graduates already trained to work in the industry and technology designed for the industry. However, the resulting industry-specific bias in the curriculum leaves graduates ready to work only for the fossil-fuel industry. These grads are unprepared for work in other fields such as green energy, are socially and ethically normalized to the fossil fuel industry, and are often so far in-debt that fossil fuel industry jobs are often the easiest or only opportunities available. Essentially, these companies design students who have no choice but to work for them.

For all the money coming in from the fossil fuel industry, universities are, in turn, financially supporting the fossil fuel industry through their investments. This will be investigated further in Section 3.Comment by Lars B: This is the exact sort of language that puts people off from progressivism, in my opinion. It just seems snide.Comment by Lars B: Where is the agency of students here. Were often talking about petroleum engineering studies or mineral extraction management classes. This IS WHY students choose these jobs!

SECTION 2: GOVERNANCE & DECISION-MAKING

This section will look at the governance structure at Dalhousie, including the roles of the Board of Governors, the Senate and the Senior Administration.

The Dalhousie administration has become intensely diversified and specialized, resembling the managerial style of large corporations.

University affairs are divided and managed by two separate bodies: the Board of Governors and the Senate (Jones & Skolnik, 1997, p.282). The Board and Senate have committees that form proposals to bring to the Board and Senate.

The Senior Administration is charged with overseeing the implementation of the decisions made by the Board.

The Senior Administration have leading executive management role[s] (Jones, 2002) and each manage elements of university operations like research and student services. There are academic and non-academic departments and offices that carry out these operations and report to the Senior Administration.

Dalhousies Board of Governors

The Board is composed of (Dalhousie, Appointment Process):

Chancellor [ex officio]

President and Vice-Chancellor [ex officio]

Chair of the University Senate [ex officio]

15 persons appointed by the Governor in Council upon recommendation of the Board

3 persons appointed by the Board

4 persons nominated by the Dalhousie Alumni Association and approved and appointed by the Board

3 persons nominated by the Dalhousie Student Union and approved and appointed by the Board

2 members of the full-time teaching staff nominated by the University Senate and approved and appointed by the Board.

For profiles of some of the current board members see Appendix A.

The Board of Governors has the highest degree of power and influence over the university, as it must approve all recommendations made by our Senate (academic affairs) and must also appoint the university President. Among other responsibilities, the Board, appoints the President, approves decisions relating to university operations, designs and implements annual budgets and decide tuition rates (with input from the Provincial government).

Dalhousies Board has 9 committees, including Academic Affairs & Research, and Investment.

It is the Board Committees that do much of the work and then they report their outcomes to the Board. These meeting are held in-camera and as such the records are not available to the public. The supposed accountability of the governance structure falls away for the sake of authority and efficiency.

Dalhousie Senate

The Senate has the responsibility of overseeing academic affairs at Dalhousie (such as setting academic calendar, giving out degrees) and must submit all recommendations to the Board of Governors. There are 72 members, with 6 student members.

In 1990, the Senate released an environmental policy for Dalhousie. We want to highlight two important points mandated with respect to research and corporate relationships on campus:

2) Dalhousie University will strive to conduct its research activities in ways that are environmentally appropriate. Dalhousie University will also encourage its faculty and associates to conduct research that investigates the causes and mitigation of environmental degradation, as well as social, economic and industrial pathways towards sustainable development.

5) Dalhousie University will play an exemplary role by ensuring that its corporate operations become as environmentally sound as allowed by technology, economics and common sense.

We will discuss further how these policies are not maintained at Dalhousie University later in this report.

President & Senior Administration

The university President is the head of Dalhousies Senior Administration and sits on the Board of Governors, as well as all of its committees. The credentials necessary to become a university President have changed drastically due to the necessity for universities to maintain their financial viability (Soley, 1995, p.20). Credentials for this position include administrative experience and ties with corporations (Soley, 1995, p.20:21). It is astonishing that the President of a university is not selected based on academic merit or their position within an academic department, but for their ability to attract external funds (Soley, 1995, p.21). To add insult to academic injury, university Presidents are receiving six figure salaries for being successful fundraisers (Soley, 1995, p.25).

The Senior Administration consists of the President and five Vice-Presidents. Each Vice President is in charge of overseeing and managing a portion of the universitys functions. Two noteworthy Vice-Presidential roles at Dalhousie are currently held by Ken Burt, VP Finance and Administration, and Floyd Dykeman, VP External. Vice President of Finance and Administration is responsible for finances and also human resources, real estate management and the Office of Sustainability to name a few. Vice President of Externals role is to act as a strategic liaison between Dalhousie and its external relations and is in charge of communications and marketing.

Student Decision Making

Students tuition fees compose 32% (104, 602 tuition/ 323, 413 total revenue) of Dalhousies revenue (Dalhousie Annual Financial Report, 2011). Should students not then have 32% representation on the Board of Governors, the highest decision-making body? As shown above, only 3 out of 27 (11%) Board Members are students. Most of the Board is composed of old, white men who have a background in business. Is this truly representative of the student body? Only 3 out of 16 members of the Student Experience Committee (a committee of the Board of Governors) are students. Are the needs of students being heard or addressed fairly? Comment by Lars B: I feel this is a misleading argument. It actually says that money should equal representation, in which case corporations really ought to be able to buy universities in entirety. Could there be more student representation? Yes. Should it track how much we contribute to the annual budget? Probably not.

Funding Priorities

Fundraising has become critical to the university. The importance granted to financial matters and marketing a fundable image has led to the corporatization of governance.

The result has been that he Board, Senate and Senior Administration are not representative of the university community. As such the decisions reflect the values and priorities of the corporate Board, which may very well differ from what the students and community value and prioritize.[footnoteRef:7] Comment by Lars B: the. [7: For example, the university is empowered to lobby the government to not cut funding or raise tuition however these efforts have not been witnessed.]

As introduced in Section 1, one of the changes seen in universities is the growth in non-academic departments and management. It is worth noting the amount of money that is spent annually on maintaining specialized managerial positions at Dalhousie. These positions vary from secretarial to legal and they are part of the different departments that have been created to manage corporate relations, fundraising initiatives and marketing research among other functions (Dalhousie Annual Financial Report, 2011). In 2011, the second highest responsibility expenditure of the university (the first being renewed funding for all academic departments) was administration.[footnoteRef:8] [8: Responsibility expenditure is all non-general operating expenditures. Among others, it includes Facilities Management, Student Services, Academic and General. ]

The total spent of administration was $24, 761, 000. By comparison, the total expenditure for student services[footnoteRef:9] was $ 5, 776, 000.[footnoteRef:10] It is worth considering whether the priority placed on student services (accessibility services, counselling and other services for students) which is at presence in the hands of the corporate Board and not the students who are the core of intellectual labour at the university would be different if students held more decision-making power.Comment by Lars B: present? [9: Student Services includes: among others, counseling, student health, varsity, intramurals & clubs] [10: These figures are based upon the actual 2010-11 operating budget results, as calculated including the endowment variance]

SECTION 3: FOSSIL FUEL INDUSTRY ON CAMPUS

This section will examine the cozy relationship between Dalhousie University and the fossil fuel industry.

Funding for Programs

Corporations are now giving increasingly directed gifts to particular university departments and their facilities. These funds have become a major form of revenue for Canadian Universities (Soley, 1995, p.146; Walker, 2008). Although these funds have become more and more necessary, the necessity has been constructed by external forces, acting in an ongoing feedback loop which reinforces itself. Corporate funding replaces lost government funding, which is rationalized with recourse to increasing corporate funding. We must question how these funds permeate through the fabric of the university and how impacts can extend through campus and community.

One example of where this occurs at Dalhousie is Shell, who makes equipment donations annually to the department of Earth Sciences (specifically, the petrography lab). This normalizes further the relationship between students and the fossil fuel industry. It artificially increases students opinions of the corporation, effectively allowing for a continually increasing corporate presence. Other impacts and considerations Comment by Lars B: Thats an empirical statement that may not be true actuallyComment by Lars B: ?

Got the Credentials?

Research shows that industry favours students who have participated in field experience programs. Work terms are designed for students to build direct relationships with industry professionals and gain real-life experience (Klawe & Whitney, 2003). As noted in Section 1, funding by corporations involves making an agreement and forging direct ties between the university and the donor (Graham, 2000, p.26). At Dalhousie, the Department of Earth Sciences and Engineering have both benefited from funding by Shell in order to provide real-life experience that links students with industry (Faculty of Engineering). For example, Shell funds annual field excursions and tours for Earth Sciences students that take place on Shell property and various oil rich territories (Department of Earth Sciences, 2007). These excursions are part of an academic course at Dalhousie. This type of programming encourages learning and knowledge advancement in sectors that cause social and environmental harm. Comment by Lars B: Knowledge advancement can also mean lessening that harm. Consider this.

Shell Experiential Learning Fund (SELF)

Dalhousie is one of many universities in Canada that receive funding from Shell through their national campaign to support education (Shell Canada). As part of the Campus Ambassador Program (CAP), Shell has senior advisory officials present on 16 campuses across Canada (Shell Canada). These advisory roles at Dalhousie extend from student mentoring and project advisors to participating in field-based excursions (Faculty of Engineering). Under the CAP program, Dalhousie receives money through a fund called the Shell Experiential Learning Fund (SELF) which was established to provide experience for students beyond the classroom. SELF funds are divided three ways among the faculties: Design Competitions for Engineering students, Field Schools for Earth Sciences students and Student Research Projects for both faculties (Faculty of Engineering).

Although experiential learning is an important component to any field of study, it is the focus on the fossil fuel related curriculum, and the reliance on external oil funding that is problematic. Why? In 2006, when announcing SELF funding, then President and CEO of Shell Clive Mather proudly stated that As well as forming strong bonds with the students and faculty, the Ambassadors will help reinforce Shells reputation as a first class employer (Faculty of Engineering). If relationships between fossil fuel corporations and students continue to become stronger, the link between student graduates and Shell as a potential employer will only grow stronger.

This sort of relationship does not correlate with Dalhousies Senate Environmental Policy, which states that Dalhousie and its students should be participating in research activities which will lead to social and economic pathways for sustainable development. Fossil fuel corporations like Shell are not sustainable, as they rely on the profitability of a finite resource that contributes to climate change, and causes devastating social and environmental harm.

When investigating this program we found very little specific information, except for in an Earth Sciences Newsletter dated 2006. It stated that Shell would donate $200,000 over a period of three years to each of Engineering and Earth Sciences, to a total of $400,000. Internal departmental funding also contributed to funds provided by Shell, as was the case with the Faculties of Engineering and Science at Dalhousie which supplemented the fund in 2006 by $45,000 (Faculty of Engineering). A 2011 Unit Review Documentation by the Earth Sciences Department stated that Dalhousie has continued to receive between $50,000- $60,000 annually from SELF since 2006, which now supports faculties of Engineering, Management and Earth Sciences. This document noted that SELF allows students to travel and meet directly with Shell professionals; supports student research and field trips and helps students travel to conferences.

It was difficult to find any specific information about particular guidelines and criteria that Dalhousie must follow as a recipient of SELF funding. However, there is a Terms of Reference document available detailing the relationship between the University of Alberta and SELF. One term of reference which struck us was that:

project ideas must demonstrate relevance to course work, and Shell Canadas business. Preference will be given to projects that facilitate interaction between Shell Canada employees and students (University of Alberta)

This quote, in relation to student research project topics, demonstrates the direct relationship and influence Shell has over the funding received and research conducted by students. As Dalhousie seems to have no public record of a SELF Terms of Reference, we can only suppose this relationship at a fellow Canadian university is similar to other universities that are SELF recipients.

The source of funding that faculty receives can have an impact on the content they cover in their courses or the research that students undertake. For example, an Earth Sciences professor at Dalhousie University who has supervised a field component for a graduate seminar in Sedimentology, took students on various excursions in order to get some hands-on experience. A former Geoscience Researcher at Chevron Texaco, they led these field excursions in the same areas where they used to do excursions with Chevron Texaco. It has been widely acknowledged that over the years this same professor has received funding from fossil fuel companies like Encana, Shell and Imperial Oil (Department of Earth Sciences, 2011). While this may be cast as the sharing of experience and resources, it impacts the lens though which students gain knowledge and develop opinions.

Although the example above illustrates a direct link between fossil fuel corporations and faculty, not all faculty members in the Earth Sciences and Engineering departments receive external funding with such stipulations attached. We are merely illustrating that when money is accepted from fossil fuel corporations it can determine research topics taken on by students and faculty, content taught in class (because the research topics of the professor will have an effect on what they teach, work-term placements, and culture within the department (Graham, 2000, p.26).

Fundraising: Dalhousies Bold Ambitions Campaign

Fundraising has become an important strategy for universities across Canada as they struggle to find new ways to attract external revenue. Known as Dalhousies $250 million Campaign, Bold Ambitions has amassed a series of noteworthy donations from alumni and corporations. Many of these donations have been from Canadian banks, which invest in the tar sands or directly from fossil fuel corporations such as Imperial Oil. These funds from corporations complicit in causing social and environmental devastation, and the banks that support them. By accepting these donations Dalhousie is sacrificing its integrity as an institution of learning committed to sustainability by fostering relationships with fossil fuel corporations and banks that invest in these corporations. Comment by Lars B: Isnt it known as Bold Ambitions? I think this is reversed.Comment by Lars B: Improper grammar. This is a fragment.Comment by Lars B: Overreaching? This research paper goes from talking about compromise and potential influence to directly stating causality here. This affects its credibility deeply.

Dalhousie does not have a screening process for where funding comes from. Its all about maintaining the bottom line. We recommend that Dalhousie establish a fundraising policy that prohibits accepting money from unethical sources.

Imperial Oil

As part of the Bold Ambitions campaign, Imperial Oil Foundation has donated $400,000 to be distributed over a four year period for a program called Math Circles. Like the Shell SELF program, this is given annually. . Quoting the need to live in a country with a science-based population, Imperial Oil suggests that ...if (Canada) wants to stay competitive, we need to spark the imaginations of this generation in the sciences and mathematics (DUOER, 2008) But how does Imperial Oil hope to spark our imagination? Donations like these create relationships between fossil fuel corporations and allow them to influence what topics; logos and viewpoints students are exposed to (Graham, 2000, p.26). The simple presence of the Imperial Oil name and logo on materials produced by Math Circles will maintain the image that these industries are an acceptable part of our society.

(Potash Mining in Penobsquis, NBIn order to comprehend why this next case, in our opinion, represents the worst case of Dalhousies implicit support of social and environmental harm in a neighbouring maritime community, we will briefly outline a few things. First, Potash is an umbrella term representing all potassium salts that are used as fertilizers (UNEP, 2001). Potash mining is an extraction process to collect potash and phosphate rock to produce a fertilizer (UNEP, 2001). This extraction process causes excessive environmental damage as dust and exhaust gas are released into the air, while the leaching of toxic minerals and processing wastes may end up in the groundwater (Mining Watch Canada, 2007). There has also been warning that the extraction process or dewatering can have an effect on water supplies (UNEP, 2011). PotashCorp Saskatchewan is the leading producer of Potash fertilizer and in 2004 it began mining operations in the area of Penobsquis, New Brunswick (CCP, 2012). In 2004, PotashCorp Saskatchewan began a series of seismic testing in the area of Penobsquis. Seismic testing disrupts the lives of those living nearby as it includes the planting and detonation of dynamite (CCP, 2012). This testing is completed by corporations that are searching for oil or other minerals in the ground. The damage from seismic testing in the town of Penobsquis included muddy and contaminated tap water and households shaking (CCP, 2012). When mining activity officially began, residents lost their water supply. It was not long before residents realised that a loss of water was linked to the mining activity, as Potash mines require a large amount of water for the extraction process. Local government officials and the Provincial Department of Environment knew what was happening, and only very poor solutions have been implemented. In the end, residents still do not have control over the inflow of water to their homes. Due to Potash mining in the town of Penobsquis, homes are sinking, air is being polluted, and water is being lost. Many citizens of Penobsquis have come together to fight mining activity in their area, but they have slowly learned that the relationship between industry and government takes precedence over the lives and health of ordinary citizens. Citizens of Penobsquis organized under the name Concerned Citizens of Penobsquis and have filed a claim with the Mining Commissioner seeking compensation. This hearing has been called The New Brunswick Mining Commission Hearing and although currently stalled, will continue in June 2012 (CCP, 2012). This case brings awareness of the social and environmental harms of mining activity, and it is happening right here in the Maritimes. )Potash Corp

How is Dalhousie tied to the Potash case described above? Dalhousies medical school located in New Brunswick has recently accepted a $500,000 donation from PotashCorp (Dalhousie, Medicine), as part of the Bold Ambitions campaign. But what sort of Bold Ambitions are being encouraged, and why is Dalhousie relying on donations from corporations clearly perpetuating social and environmental injustice? The PotashCorp donation will be used to attract and support a research chair in occupational medicine (Dalhousie, Medicine N.B.). The trend of targeted research funding continues. Comment by Lars B: Is this inherently a bad thing. In this case, the funding is going to something entirely different than the corporations activities, so claiming interference is presumptuous. The University is trying to attract funding for specific purposes. Is that a bad thing?

Arguably the worst aspect of this unethical link between PotashCorp and Dalhousie is the sort of media coverage these donations receive. Even if PotashCorp does not extend its influence directly over who is hired by Dalhousie and the topic of research, this generous donation has allowed PotashCorp to extend a financial hand and to give the unethical activity of Potash Mining a good face within the community. This quote was found on the Dalhousie media webpage:Comment by Lars B: Is it unethical? Again, theyre funding medical research. It seems quite distant.

At PotashCorp, we know that quality of life in our local communities depends on access to quality healthcare. We hope that this investment helps to provide better care across southern New Brunswick and supports our provinces effort to retain more young physicians going forward

Mr. Stewart Brown, General Manager, PotashCorp New Brunswick

This quote is an insult simply because it is widely known that the health and environmental effects of mining are devastating. The companys very existence and everyday operation is fundamentally contrary to its advertised image. Comment by Lars B: Is this fair? There are health impacts in most industrial sectors, not just mining or extraction. To say that it wants to promote health but has operations that damage health is not to say that it cannot improve.

Relationships like this cause inarguably damaging practises to be rationalized, normalized, and perpetuated

Pensions and Endowments

Dalhousies relationship to the fossil fuel industry goes beyond accepting gifts and donations from large corporations. Dalhousie also makes financial contributions to fossil fuel projects by investing the money it holds in its endowment and pension funds. Research on Dalhousies particular fund managers and investment portfolios revealed that Dalhousie has a substantial amount of money invested in various fossil fuel corporations all over the world.

This section of the report focuses on the connection between Dalhousies pension and endowment investments and the fossil fuel industry.

Background

(Dalhousie as a ShareholderWhen Dalhousie invests its pension and endowment funds, it becomes a shareholder in corporations that it owns stock in. As a shareholder in the company Dalhousie has certain rights to vote on particular corporate matters and to make statements (directly or by proxy) at the shareholder meetings. Dalhousies shareholder voting records are available only to Trustees and Senior Administrators and their fund managers handle the shareholder voting (Sustainable Endowments Institute, 2011).)According to the Dalhousies Endowment Management Policy (1990),core education programming is funded primarily from public (i.e. government) and user (i.e. student) sources. Enrichment activities seek funding from non-core sources, primarily endowments.

Universities invest both the endowment money they receive and money held in their pension fund.[footnoteRef:11] All together, Canadian universities have $41 billion in investments through pension funds and endowments. (CURI, 2011). Dalhousies existing endowments are valued at approximately $364.1 million (Dalhousie, 2012).

At Dalhousie, the Investment Committee of the Board of Governors oversees all investmentpolicies and decisions. They contract investment management out to 21 investment managers who are each responsible for tailoring an investment portfolio for Dalhousie. This means that each investment manager invests part of Dalhousie Pensions and Endowments in different corporations in order to receive a rate of return. Dalhousie uses a strategy of diversity and aims to receive a 7-8% rate of return on their investments (personal communication with Rochelle Owen, April 2012).

Dalhousie does not have any environmental or social responsibility criteria for their investments. Dalhousie does not invest in renewable energy funds or community development loan funds (Sustainable Endowments Institute, 2011). Within their Endowment Management Policy (1990), it is stated that a donor can request that certain financial management constraints be placed on the endowment, which would be agreed upon by the Board (ie. no tobacco-related investments), however no record was found of instances where this occurred. [11: Pensions are a regular payment made during a person's retirement from an investment fund to which that person or their employer has contributed (google dictionary). Dalhousies Pension Plan is an employer sponsored, Defined Benefit Plan. This means that employees receive a specific, predetermined retirement benefit, and it is solely the employers responsibility to ensure that the plan is financially healthy enough to pay out those benefits (DSU, 2012). The negotiations between Dalhousie and the Dalhousie Faculty Association that nearly led to a strike in February 2012 were largely focused on the structure of pension plans. The Board of Governors wanted to move to a Jointly Sponsored, Defined Benefits Pension Plan, which still promises members certain benefits; however it is responsibility of both the employer and employee groups to ensure that the plan is financially healthy.]

The cozy relationship between fossil fuel corporations and universities includes the financial resources that the fossil fuel industry receives from direct and indirect university investments.

Fossil fuel corporations look to investments, bank loans and other financing to support the expansion of dirty energy projects.

When universities and banks investments support dirty energy projects like tar sands expansion or new coal-fired power plants, it serves to lock Canada into a polluting and destructive industry that violates Indigenous rights, pollutes communities downstream and contributes to climate change.

Table 1 Overview of Dalhousies Pension and Endowment investment fund managers.

Dalhousie University Pension & Endowment Fund Managers:

Asset Class:

Greystone Managed Investments Inc.

Canadian Equities

Burgundy Asset Management

Canadian Equities

CIBC Global Asset Management

Canadian Equities

Ashford Capital Management

US Equities

Wedge Capital Management L.L.P.

US Equities Large Cap

State Street Global Asset Management

US Equities Medium Cap

Sprucegrove Investment Management

Non-North American Equities

First Eagle

Non-North American Equities

State Street Global Asset Management

Currency hedges

CIBC Global Asset Management

Canadian Bond Index

Addenda Capital Inc.

Canadian Bonds active

BlackRock Asset Management

Canadian Bonds - active

Canso Investment Counsel

Canadian Bonds - active

Commonfund Capital

Private Equity

JP Morgan

Private Equity

Pantheon

Private Equity

Crestline Investors, Inc.

Absolute Return Hedge Fund of Funds

Brevan Howard

Global Macro

BlueCrest Capital

Global Macro

Lazard Asset Management

Infrastructure securities

JP Morgan

Global Maritime

CBRE Clarion

Global Public R.E.

GPM

Canadian Real Estate

Canadian Urban

Canadian Real Estate

Methods

During the period of May 1st to May 3rd we investigated the stock holdings of Dalhousies Fund Managers using online stock reports. Investments in tar sands corporations were noted. A review of media articles provided supplementary information on the fund managers connections to fossil fuel corporations. No quantitative data was gathered pertaining specifically to Dalhousies direct monetary investments in fossil fuels because this information is not disclosed publically. Comment by Lars B: Formatting craziness?

Types of corporations included in the analysis include corporations involved in extraction (ie. operating in the tar sands, coal mining, offshore drilling), production/processing (ie. natural gas production and oil refining) and distribution (ie. involved in pipeline manufacturing or construction) of fossil fuels. This method was chosen because the exact investment portfolio that each fund manager has for Dalhousie is unavailable to the public.

Fund Manager Portfolios

Table 2 The table below shows the fossil fuel corporations that some of Dalhousie Universitys Pension and Endowment Fund Managers were invested in at the time of the research.[footnoteRef:12] [12: The sources used were http://mffais.com and http://www.tickerspy.com]

Fund Manager

Fossil Fuel Companies where fund manager holds stocks

Greystone Managed Investments Inc.

TransCanada, Suncor Energy, Canadian Natural Resource, Baytex Energy, Bank of Nova Scotia*, Bank of Montreal*, Potash Corp of Saskatchewan, Kinross Gold, Goldcorp,

Wedge Capital Management

Talisman Energy Inc, Exxon Mobil Corp, Encana, Nabors Industries Ltd, Chevron Corp, Royal Dutch Shell, Conocophilips

Ashford Capital Management

Trican Well Service Ltd, Royal Gold Inc, Kinder Morgan Energy Partners Lp, Clean Energy Fuels Corp, Halliburton Co, Exxon Mobil Corp, Core Laboratories Nv, Kinder Morgan Management Llc, Conocophillips, Anadarko Petroleum Corp, Chevron

BlueCrest Capital

Halliburton Co, Marathon Oil Corp, Sunoco Inc, Valero Energy Corp, Hess Corp, National Oilwell Varco Inc, Baker Hughes Inc, Anglogold Ashanti Ltd

Lazard Asset Management

Halliburton Co, Eqt Corp, Conocophillips, Petroleo Brasileiro Sa, Devon Energy Corp, Consol Energy Inc, James River Coal Co, Cameron International Corp, Newmont Mining Corp, Chevron Corp, Occidental Petroleum Corp, Noble Energy Inc, Valero Energy Corp, Cenovus Energy Inc, Spectra Energy Corp, Alpha Natural Resources Inc, Hess Corp, Seadrill Ltd, Royal Dutch Shell Plc, Noble Corp, Cimarex Energy Co, Exco Resources Inc, Marathon Oil Corp, Helmerich Payne Inc, Exxon Mobil Corp, China Petroleum Chemical Corp, Key Energy Services Inc, Apache Corp, Anadarko Petroleum Corp, Ecopetrol Sa, Rowan Cos Inc, Suncor, Yamana Gold Inc, Enbridge Energy Partners Lp, Gmx Resources Inc, Diamond Offshore Drilling Inc, Aviva Plc, Canadian Natural Resources Ltd, Tesoro Corp, National Oilwell Varco Inc, Oil States International Inc, Petrochina Co Ltd, Hercules Offshore Inc, Atwood Oceanics Inc, Kinder Morgan Energy Partners Lp

JP Morgan

Talisman Energy, Cenovus Energy, and Nexen Inc. (Geisi, 2010)

Note: data on all of the fund managers was not available and so only those where data was available are included in the table.

Banks Financing the Tar Sands

During our investigation we learned that some of Dalhousies fund managers hold shares in major banks. In addition major banks manage some of Dalhousies pension and endowment investments. Using data released by the Rainforest Action Network (van Gelder et al., 2008), additional information on these institutions involvement with the fossil fuel industry was obtained.

Table 3 The table below displays the money that the banks have loaned to corporations operating in the tar sands between 2007 and 2009.[footnoteRef:13] [13: This information is from a study done by the Rainforest Action Network. The method used to obtain the data was to look at all financing (underwriting, direct financing, corporate loans, etc) from the financial institutions back to the companies with large holdings in the tar sands using Bloomberg tables. (Rainforest Action Network, n.d.)]

Bank

Loans to tar sands companies (Million USD)

JP Morgan

$13,895

CIBC

$10,467

ING

$119

Bank of Montreal (BMO)*

$4,467

Bank of Nova Scotia *

$4,685

*BMO and Bank of Nova Scotia are not fund managers for Dalhousie but the portfolios of Dalhousies fund managers include investments in BMO and Bank of Nova Scotia.

Table 4 This table compares the investments banks have made in fossil fuels compared with renewable energy[footnoteRef:14] [14: Data from van Gelder, W. et al. (2008). See this report for the methodology, industries included and more information on the role of banks in the expansion of the fossil fuel industry.]

Total investments in C$ million

% of total corporate investments

Renewable

Oil, gas & Coal

Renewable

Oil, gas & Coal

CIBC

2,181

27,430

0.98%

12.35%

Bank of Montreal (BMO)

831

30,297

0.29%

10.45%

Bank of Nova Scotia

1,505

19,819

0.66%

8.74%

The Corporations

This section will provide more detailed information on some of the fossil fuel corporations listed above in which some of Dalhousies fund managers hold stocks.

Canadian Natural Resources Canadian Natural Resources is a Canadian oil and gas production corporation active in Canada, the United Kingdom, Cte dIvoire and Angola in which some of Dalhousies pension and endowment managers hold stock.

In 2007, the corporation produced 331,232 barrels of oil per day and 1,668 million cubic feet of natural gas per day. JP Morgan Chase has been a lead manager of the stock offering of Canadian Natural Resources and BMO Financial was one of the banks that underwrote this issue (Gelder, et al., 2008, p.16).

Baytex Energy

Baytex Energy is a Canadian corporation that is active in the acquisition, development and production of oil and natural gas in the Western Sedimentary Basin in Canada. In 2007, Baytex Energy produced 27,575 barrels of crude oil and Natural Gas Liquids and 51.9 million cubic feet of gas daily. BMO Financial is one of the banks that have underwritten the stock offerings of Baytex Energy (Gelder et al., 2008, p.28).

EnCana

EnCana is a Canadian energy corporation involved in unconventional natural gas and tar sands developments in the United States and Canada. It has three tar sands properties and is also investing in exploration opportunities in Brazil, France, Greenland, Oman and Qatar. In 2007, the daily production of EnCana totalled 107,340 barrels of normal crude oil, 26,814 barrels of synthetic crude oil and 3,566 million cubic feet of natural gas. CIBC is one of the banks that have underwritten the stock offerings of EnCana (Gelder et al., 2008, p.68).

STARS (Sustainability, Tracking, Assessment & Rating System)

The Sustainability Tracking, Assessment & Rating System (STARS) is self-reporting system for colleges and universities to measure their sustainability performance.

For Dalhousie, Rochelle Owen, the Director of the Office of Sustainability completed the assessment. Overall, Dalhousie achieved a Silver rating (AASHE, 2011).

In the category for Investment, Dalhousie scored 2.47 out of 16.75.

Points in the investment category:Committee on Socially Responsible Investment -- 0.00 / 2.00Shareholder Advocacy -- 0.00 / 5.00Positive Sustainability Investments -- 2.47 / 9.00Student-Managed SRI Fund -- 0.00 / 0.25Socially Responsible Investment Policy -- 0.00 / 0.25Investment Disclosure -- 0.00 / 0.25

Discussion

This investigation was intended to uncover links between Dalhousies investments and the fossil fuel industry. The results are by no means exhaustive and the intent was to uncover connections between fossil fuel corporations and Dalhousies investments based on information available considering that this information is kept confidential by both the university and its fund managers. This secrecy and lack of transparency is characteristic of universities under their corporate management styles.

As the report by Rainforest Action Network stated, stopping climate change requires ending our addiction to fossil fuels by shifting capital to new, renewable energy infrastructure and energy efficiency measures, which can meet energy needs and create jobs while decarbonizing the economy.

Canadian banks and Dalhousies fund managers that were investigated have lagged behind in investing in energy efficiency and renewable energy. Fossil fuels still account for a far larger amount of bank financing.

The loans and investments in fossil fuels contribute to the expansion of destructive projects. Financing the expansion of dirty energy is locking us into infrastructure that commits our economy to fossil fuels far into the future. The impacts of climate change and toxic development are felt the most (locally in Nova Scotia, and globally) by those who contribute the least to the problem. Dalhousies investments make us complicit in the devastating social and environmental harms caused by fossil fuel extraction and use.

Other dirty investments

While this investigation focused on fossil fuel corporations, the research uncovered that many of the fund managers portfolios included mining companies including GoldCorp that are known to be complicit in Human Rights violations around the world (Mining Watch Canada, 2009).

Dalhousie Sustainability

Dalhousie has made progress in certain aspects on sustainability such as ongoing campus greening initiatives undertaken by the Office of Sustainability and Dalhousie Student Union Sustainability Office, as well as the sustainability education opportunities in the College of Sustainability; however the fossil fuel industrys free rein on campus remains the elephant in the room that keeps Dalhousie complicit in large-scale social and environmental destruction.

Governments Dirt Energy PrioritiesComment by Lars B: Fix?

The Canadian government favours dirty energy over education. The government subsidizes the fossil fuel industry by $1.4 billion dollars a year, despite the fact that the fossil fuel industry is already rich, and students and universities are not. Fossil fuel companies operating in the tar sands have combined revenues of 1.2 trillion dollars, 1.1 trillion of which goes to foreign owned corporations. The money that Canada spends subsidizing this multi-trillion dollar industry could pay off 2/3 of the student loans taken out this year (Climate Action Network Canada, n.d.). It could also go directly to universities so that they are not dependent on corporate funding, or it could be invested in the emerging renewable energy sector. The opportunities in the green market are rapidly growing, but Canada is not investing in this sector, which means graduates are losing out on potential job opportunities as manufacturing contracts go elsewhere. Is the government acting with its head in the sand, the Canadian government continues to invest in the oil and gas industry, a sector of employment that will be phased out in 10-20 years? Do they personal interests and investments in this industry? Comment by Lars B: Broken sentence.

The governments funding of destructive polluters at the expense of people and and the planet, and the consequences for education could be explored at length, however for the purpose of this report, we simply wish to highlight the fact that the connection between polluting corporations and universities is caused in part by the fact that the government has neglected education in favour of these destructive industries.

SECTION 4: CONCLUSIONS & RECCOMENDATIONS

On-going cuts in public funding have forced Canadian universities into a precarious financial situation. This has led to the pervasive corporatization of most aspects of the university. For one, university management today eerily resembles that of a corporation. Secondly, corporate funding and sponsorship have become an important source of funding for university programs and facilities. Under the guise of austerity or innovation, universities are adopting a corporate structure to attract external funding and to commercialize knowledge for profit. Universities now resemble businesses and not institutions of higher education.Comment by Lars B: Others seriously consider this a good thing because of the accountability it is designed to provide. The term professional management isnt a bad thing inherently, it has a lot to do with peoples training and skills.

Control over the university is in the hands of business-people and most specific information pertaining to university operations is regarded as confidential, even though those decisions affect the whole university community. Meanwhile students lack representation and decision-making power in this process.

The interests of corporate sponsors affect our education overtly and covertly. Since corporate funding has become the lifeline, Canadian universities have grown accountable to their corporate sponsors, which can come at the expense of transparency and accountability to the public. Corporate funding for research has incentivised marketable, industry-relevant research. The topics available to study, the thoughts we are led to think and the books we are offered to read, are all influenced by a set of external forces, which include corporate interests who have an increasingly powerful voice.

As part of the overall corporatization of universities, a cozy relationship between the fossil fuel industry and universities has developed. Fossil fuel corporations are funding research, programs, equipment and infrastructure at universities. At the same time, university pension and endowment funds are directly and indirectly invested in fossil fuel corporations.

The ongoing expansion of the tar sands, the worlds dirtiest energy project is enabled by funding from banks and investors, and universities play a part in supporting this system. We need a rapid and fair transition to a green economy but universities, who could potentially play an incredibly influential and important role in this transition, remain closely tied to the fossil fuel industry. Comment by Lars B: insert comma after?Comment by Lars B: insert comma after?

These trends are seen at Dalhousie, where fundraising has become critical to the university, and the importance granted to financial matters has also led to the corporatization of governance. We see polluting corporations fund buildings, programs, equipment and research. Despite Dalhousies highly marketed and publicised commitment to sustainability these corporate contributions are highly sought and praised. Given the financial reliance on these donations, perhaps it is not surprizing that Dalhousie has remained silent on harms associated with the industry-academic relationship.

In that regard, it is important to remember that another piece of the puzzle that explains these relationships is the governments ongoing neglect of education in favour of dirty energy., Addressing the federal government self-serving and destructive commitment in fossil fuels is a critical part of reclaiming our campuses. Comment by Lars B: governments?

Although not extensively explored in our report it is important to note that cuts to public funding to universities not only led to an increase in corporate funding but to increases in tuition fees and the privatization of student aid. This is another sign of capitalist interests in universities, as rising tuition fees and increasing student debt reproduce social inequalities and make it so that only the wealthy can access education. Education is a right, not a commodity nor a privilege. Under the pretext of austerity measures the government is disregarding the right of all people to education.

We have made the following recommendations to Dalhousie and to students and community members.

For students who are not only facing rising tuition fees but an increasing corporate campus:

1. Hold Dalhousie accountable and demand transparency.

Students currently lack official channels of representation and the Dalhousie administration is shrouded in secrecy. We deserve to know what decisions are being made and how they influence our campus and community. Students must take action to demand fair representation in decision-making as well as transparency regarding financial decisions and other decisions that impact students.

As students, we must become more engaged not only on a student level, but on a higher administrative level to be heard. We must reclaim the democratic means of participating in our own university community, and fight to protect our right to education.

Appendix B contains some information and resources that could be useful in this struggle.

2. Fight austerity in all its forms.

The austerity agenda that is forcing universities to form relationships with fossil fuel corporations is also causing tuition and student-debt to rise, leading to the growing inequalities in our society and causing destruction of the environment.Comment by Lars B: Tuition and student-debt increases now lead to destruction of the environment? Careful with phrasing.

We need to reject capitalist ideology that tells us there isnt enough money to fund public services, by fighting for social, economic and environmental justice on campus and in our communities. We should stop allowing ourselves to be cast as voiceless customers of our schools and governments, and fight for democratic involvement in our institutions.

3. Start a Fossil Fuel divestment campaign.

Our universitys money should not be supporting the social and environmental destruction caused by the fossil fuel industry. Appendix C contains resources to check out in order to start a campaign to get Dalhousie to stop investing in the fossil fuel industry.

(Divestment:Divestment is withdrawing financial support from a corporation that is abusing the environment, the community, or larger society.(Adapted from: wearepowershift.org))

For Dalhousie University

1. Give students at least 32% of the seats on the Board of Governors.

Student tuition accounts for 32% of the universities revenue and as such they should hold at least 32% of the decision-making power. Students are the core of intellectual labour at the university, and deserve to be respected as the most important members of the university community.

2. End the secrecy around investment.

Dalhousie should make its investments public so that students can know where the universitys money is going.

3. Form a multi-stakeholder Socially Responsible Investment Committee that reports to the Board of Governors

A committee should be formed that includes students and community members that reports to the Board of Governors. This committee should examine all of Dalhousies current investments and work with Dalhousies fund managers to develop socially responsible investment portfolios that are fossil-fuel free.

4. Make shareholder statements public and engage in Shareholder activism

Until Dalhousie fully divests from fossil fuel corporations, Dalhousie can use its power as a shareholder in these polluting corporations to address the social and environmental consequences of climate change and fossil fuel usage by voting and submitting statements to shareholder meetings.

5. Divest from dirty fossil fuel companies.

To fulfill the commitments that Dalhousie has already made to sustainability Dalhousie must divest from fossil fuel corporations. This will involve working with the Socially Responsible Investment Committee and Dalhousies fund managers to develop investment portfolios that are in line with Dalhousies commitments to sustainability.

6. Explore investment opportunities in community-driven renewable energy.

Dalhousie should explore socially responsible investment opportunities, in particular those that support local, community-driven initiatives in Nova Scotia. One option is for Dalhousie to invest in Community Economic Investment Funds (CEDIFs) that are developing renewable energy in Nova Scotia.

CEDIFs are a pool of capital that is raised through the sale of shares, and is managed to operate or invest in local initiatives. In Nova Scotia there are many CEDIFs that are invested in renewable energy projects, and represent an opportunity for Dalhousie to invest in the emerging green energy economy.

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