Protests Erupt as UBC Board Approves Balanced 2026/27 Budget

The University of British Columbia (UBC), one of Canada's leading public research universities, marked a pivotal moment on March 31, 2026, when its Board of Governors (BoG) unanimously approved a balanced operating budget for the 2026/27 fiscal year. This decision authorized the institution to allocate roughly $4.1 billion in expenditures, reflecting a 4 percent increase or $132 million more than the previous year in operating costs alone. However, the approval was far from routine, overshadowed by a vibrant 'noise rally' organized by pro-Palestinian student and community groups demanding immediate divestment from companies linked to the occupation of Palestine and severance of ties with Israeli academic institutions.

The rally, held outside the heavily secured Robert H. Lee Alumni Centre, featured chants like 'Free, free Palestine' and 'BoG, your hands are red, 80,000 people dead,' marching bands, symbolic piñatas representing apartheid walls, and displays accusing UBC leadership of complicity in genocide. Groups such as Palestine Solidarity Action, Solidarity for Palestinian Human Rights, Apartheid Free UBC, and Grad Students for Palestine united in their call, with participants like AMS VP External Solomon Yi-Kieran voicing support, albeit personally. This intersection of fiscal planning and ethical investing highlighted ongoing tensions at UBC and across Canadian higher education.

Unpacking the 2026/27 Budget: Priorities Amid Fiscal Pressures

UBC's 2026/27 budget projects a balanced operating position, with revenues matching expenses at approximately $2.9 billion for core operations, part of the broader $4.1 billion total spend. Labour costs, comprising about 75 percent of the budget, alongside rising utilities, software, and construction expenses, pose significant challenges. The university faces enrolment uncertainties due to federal international student caps, though diversification efforts and domestic recruitment have kept overall numbers stable.

Key priorities include bolstering research capacity—securing over $945 million in external funding through 2026/27—student support services, and emerging technologies. Faculties and units must defer non-essential projects and exercise spending discipline to maintain this equilibrium. As VP Finance Frank Laezza noted in preparatory discussions, 'continued discipline and careful prioritization will be essential' in this narrow-margin environment. This fiscal prudence occurs against a backdrop of provincial funding stagnation and national policy shifts affecting post-secondary institutions.

The UBC Divest! Campaign: Momentum Building for Ethical Investing

At the heart of the protests is the UBC Divest! campaign, a student-led initiative targeting divestment from 30 corporations accused of complicity in genocide, occupation, and international law violations in Palestine. The campaign also seeks to end academic ties with Israeli universities perceived as upholding apartheid structures. Recent successes include gathering nearly 1,500 signatures for an Alma Mater Society (AMS) referendum in early March 2026, which passed with over 8,800 votes—the highest among four referenda—mandating AMS advocacy to UBC Senate for cutting those ties.

• Divest UBC's endowment from complicit corporations.
• Sever partnerships with Israeli institutions.
• Align investments with UBC's human rights commitments.

Activists argue that UBC's $3.4 billion main endowment pool (part of $6.9 billion in assets under management as of 2025) holds significant stakes warranting action. The campaign frames divestment as a moral imperative, echoing global Boycott, Divestment, Sanctions (BDS) efforts.

UBC's Responsible Investment Framework: Progress on ESG 'S' Factor

During the BoG open session, discussions touched on updating UBC Investment Management's (UBCIM) responsible investment policy, particularly integrating the 'S' (social) pillar of Environmental, Social, and Governance (ESG) criteria. Finance Committee Chair Byron Thom and VP Finance Laezza highlighted retaining expert Margaret Childe in February 2026 and commissioning a 'Social Risk Primer' from the Shareholder Association for Research and Education (SHARE). This primer aids in assessing human rights and social risks in portfolios reliant on external managers. UBCIM's initiative positions the university as a leader among Canadian peers.

The Responsible Investment Working Group is slated to meet soon, with policy updates forthcoming to the UBCIM board. CEO Dawn Jia acknowledged the nascent nature of social risk assessment, emphasizing education and peer influence. Governor Irene Lazinger proposed board learning sessions, signaling institutional responsiveness without firm divestment commitments.

Photo by Scott Rodgerson on Unsplash

Historical Divestments at UBC: Lessons from Fossil Fuels and Beyond

UBC's divestment history provides context. In 2019, the BoG approved divesting $380 million (about 2 percent of its then-$1.7 billion endowment) from fossil fuels, fully committing by 2030 following student campaigns by Climate Justice UBC. By 2021, $214 million had shifted to low-carbon investments. Earlier precedents include partial South African divestment in the 1980s against apartheid.

These steps demonstrate UBC's willingness to evolve policies under pressure, though timelines often span years. Protesters invoke this legacy, questioning delays in addressing current social risks.

Stakeholder Perspectives: Students, Faculty, Admin, and Board

Students view divestment as urgent moral accountability, with speakers decrying UBC's 'links to Israeli apartheid' and vowing 'no peace and no quiet' absent change. Faculty and staff like Nathan Herrington criticize administrative silence on Palestinian issues. Conversely, UBCIM stresses measured, evidence-based approaches to avoid fiduciary breaches.

Board members prioritize fiduciary duty while advancing ESG integration. President Benoit-Antoine Bacon's administration balances innovation investments with ethical scrutiny, as seen in strategic directions emphasizing impact and partnerships. Broader faculty associations at other Canadian universities, like U of T's UTFA, have voted for divestment, amplifying pressure.

Canadian Higher Education Context: Fiscal and Ethical Challenges

UBC's scenario mirrors national trends. Federal caps on international students have strained revenues across institutions, prompting balanced budgets via cuts and efficiencies. Concurrently, Palestine solidarity campaigns proliferate: McGill faculty boycotts, U Sask's 'Disclose, Divest' letter, and rankings shaming unresponsive universities. UBC Divest's Scholasticide Rankings highlight varying institutional responses.

Responsible investing evolves, with ESG assets growing globally, yet social factors lag environmental ones. Canadian universities, managing billions in endowments, navigate donor intent, returns, and activism.

Implications: Balancing Finances, Ethics, and Reputation

Achieving balance amid protests underscores UBC's dual mandate: fiscal sustainability and societal leadership. Divestment could signal ethical fortitude but risk returns (fossil divestment yielded positive outcomes post-2020). Non-compliance risks reputational harm and campus unrest, as seen in encampments elsewhere.

For students, clearer policies enhance UBC's appeal; for donors, transparency builds trust. Economically, endowments fund scholarships and research, amplifying impacts.

Photo by Francesco Ungaro on Unsplash

Future Outlook: Working Group, Policy Updates, and Activism

Upcoming milestones include the Responsible Investment Working Group's deliberations and policy revisions. Protesters pledge sustained action, potentially escalating if unmet. UBC's trajectory could influence peers, fostering sector-wide ESG advancements.

In navigating these waters, UBC exemplifies higher education's evolving role in global ethics while stewarding resources for academic excellence. For those eyeing careers in Canadian academia, staying attuned to such dynamics is key—explore opportunities at leading institutions facing similar crossroads.