Oxford University funds avoid dirtiest fossil fuels

There has been a global divestment movement

Oxford University will continue to avoid investing in the dirtiest fuels but has stopped short of agreeing to divest all its fossil fuel investments.

The university, which faced calls from students to withdraw its investments on environmental grounds, said it would continue with its other energy funds.

It said it currently had no investments in coal and tar sands and would avoid such companies in future.

Campaigners welcomed the announcement as a "cautious first step".

Vice-Chancellor Prof Andrew Hamilton said: "We see the main purpose of our investment fund as generating the financial resources to support our academic purpose.

"However, our investment managers take a long-term view and take into account global risks, including climate change, when considering what investments to make."

£2bn of funds

Andrew Taylor, fossil free campaigns manager at People & Planet student action group, said: "When it comes to big oil, this is a cautious first step.

"Tar sands need to be kept in the ground and universities should divest from any company digging them out."

Oxford University Endowment Management manages £2bn of funds on the university's behalf.

The Oxford Fossil Free campaign had urged Oxford University to evaluate the carbon risk of its portfolio, to move from high-carbon assets to low-carbon alternatives, and to cut direct investments in coal and tar sands oil - the most polluting energy sources.

Several top universities including Stanford and Glasgow have already decided to pull out of their shares in fossil fuels.