The University of Sydney has been accused of breaking its own environmental policies by investing $1m in the company behind the controversial Maules Creek mine.



Greenpeace said Dr Michael Spence, vice-chancellor of the University of Sydney, had confirmed that 0.1% of the university’s long-term investment fund was used for Whitehaven Coal shares.

Whitehaven oversees the Maules Creek mine, a project that which will involve the flattening of rare box gum woodland in the Leard State Forest in northern New South Wales.

Protesters have repeatedly clashed with police at the mine site, with opponents of the project claiming it will endanger more than 30 threatened species, suck up valuable water resources and trigger a significant output of carbon emissions.

Greenpeace said the University of Sydney should sever its links to Whitehaven. The environmental group claimed the university was in breach of its own investment and environmental policies, which state it will “manage the activities over which it has control and which impact upon the environment in accordance with the principles of ecological sustainability”.

David Ritter, chief executive of Greenpeace Australia, said the University of Sydney was out of step with public opinion.

“This mine does not have any social licence, by any reasonable understanding of the term,” he told Guardian Australia. “When you have a proud history like the University of Sydney, you really don’t want to be involved in something like this.

“We are talking about a mine that is directly responsible for the destruction of a critically endangered ecosystem. I don’t understand how you can have principles of ecological sustainability and then be involved in a project of such destruction.”

Ritter said Greenpeace and other climate change activist groups were increasingly looking at whether universities and other institutions invested in fossil fuels.

In May, prominent US university Stanford divested from coal companies, in a move seen as a major victory for a worldwide campaign to compel businesses to cut their ties to fossil fuel.

The movement is still in its infancy in Australia. The Australian National University has previously responded to pressure to sell its fossil fuel interests, only to subsequently reinvest in a gas operation.

“It’s clear which direction this is all heading,” Ritter said. “Universities should be at the forefront rather than have to play an embarrassing catch-up later on. Investments like these are bad for the climate and bad for communities, it should be a no-brainer.”

A Sydney University spokeswoman said it “takes its environmental and social responsibilities seriously”.

“Of the university’s five Australian equities managers, only one holds Whitehaven Coal Limited,” she said. “The holding represents less than 0.1% of the university’s total long-term investment funds.

“The university works closely with its external fund managers to ensure the highest environmental, social and governance standards are met.

“While we believe the university’s investment strategy is well placed to ensure the development of environmental and socially sustainable investments, our portfolio is under constant review to ensure our social, environmental and governance responsibilities are balanced with our responsibilities to students, staff and donors.”