Trust and values

Progress:

Sustainability remains enshrined at the highest level of University strategy. Under Plan targets, we are operating in alignment with the principle of stakeholder inclusiveness through our ongoing consultation with students, staff and external stakeholders in the development of foundational aspects of the Sustainability Framework - and through publicly available performance reporting. To date, consultation has included extensive internal and external engagement to develop our Sustainability Framework, including the Sustainability Charter released in 2016, the Sustainability Plan 2017-2020 and our annual Sustainability Reports.

However, feedback indicates more work is required to raise the profile of institutional sustainability endeavours. The 2020 Student & Staff Sustainability Survey found that 30 percent of respondents had no awareness of whether the University’s sustainability targets were being met, and just under half did not believe that the University’s sustainability objectives have been ‘clearly articulated’.

Future directions

Development of the University’s new Sustainability Plan is underway and will progress into the second half of 2021. Plan development is guided by the University’s institutional strategy to 2030, Advancing Melbourne. The finalised Plan will align with Advancing Melbourne’s five intersecting themes and assist in delivery of the University’s strategic priorities.

Responsible Investments

Progress

The University’s Sustainable Investment Framework (SIF) outlines key criteria for integrating global climate change risk into the University’s investment decision-making. Our investments are managed externally, with fund manager performance measured against the SIF.

In 2018, an independent assessor concluded that the University’s primary investment manager, the Victorian Funds Management Corporation (VFMC), demonstrated strong alignment with the SIF, as evidenced in the VFMC’s 2018 climate change position statement and updated Environmental, Social and Governance (ESG) policies. In 2020, the assessor found that the VFMC had made further significant progress in its approach to climate change, and that the carbon intensity of the University’s investment portfolios had reduced since its 2018 assessment.

Although the University is on track against its targets under the Plan, feedback captured through the 2020’s University community consultation process indicated that many students and staff believe a stronger commitment to divestment from fossil fuels should be a priority under our new Sustainability Plan. A significant subset of those who raised this topic called for a more transparent and clearly articulated pathway to divestment.

Future directions

Work on Plan targets listed for 2021 completion are progressing. A proposed Impact Investment Framework was presented to the University’s Investment Management Committee (IMC) in late-2020, who determined that further work was required to ensure alignment with University values and goals.