The scale of climate change is increasing with everyday that passes without action. We are seeing more and more climate related weather events which threaten our way of life on a global scale. With 2016 being the hottest year on record and 2018 looking to break into the top four, we must act now. The Paris Climate Accord set a target to limit warming to 1.5 degrees Celsius and well below 2 degrees Celsius. Numerous reports have told us, that to reach such targets, we must reduce our use of fossil fuels. Divestment is but one way to do this. For large institutions such as the University of Auckland, there exists significant monetary power that can be used for good. While investments in fossil fuels once guaranteed returns for investors, the future is no longer so certain. HSBC, one of the world's largest banks, has published a report indicating that major oil and gas companies could lose up to 60% of their market value if the existing international protocols on emissions reduction are enforced. Furthermore, leading global investment research firm MSCI has stated that fossil fuel divestment even “has the potential to reduce overall portfolio risk because of Energy Sector volatility”.

For four years, Fossil Free University of Auckland has been campaigning for the divestment of the University of Auckland Foundation funds from the top 200 fossil fuel companies. From petitions to protests we have worked to ensure that the issue of divestment is never far from consciousness of those who are tasks with leading this university responsibly. However, we understand the need for evidence and analysis around why divestment is more than simply a moral imperative, but also a financial one. To respond to this, we are presenting the University of Auckland Council the 2018 Report on Divestment. This report seeks to highlight the financial merits of divesting in addition to the positive impact it will have on the university's image in the face of climate change. Fundamentally, every institution that divests from fossil fuels helps to erode the industry's social license to operate.