The Otago University Students' Association (OUSA) will lobby the university to make a promise not to invest in fossil fuels.
In a recent student referendum, students voted overwhelmingly in favour of the students' association pressuring the university not to invest in the industry, with 72.79% of respondents saying they should lobby the university, opposed to 16.11% voting no.
At present, the university does not have any investments in the fossil fuel industry. However, its ethical investment policy would not prevent future investment.
Association president Laura Harris said she would convey the strong opposition of students to fossil fuel investments at university council meetings and other executive meetings.
The student association's stance on the issue would also remain part of its external policy to inform future OUSA executives, she said.
Vice-president Jarred Griffiths said he was not surprised by the referendum result.
''Students are very engaged politically about sustainability and climate change issues.
''I would have been much more surprised if the vote had gone the other way.''
The result meant OUSA would provide financial assistance to the Students for Environmental Action (SEA) group to assist them in their attempts to lobby the university.
Mr Griffiths believed the university had a ''moral and ethical'' responsibility to divest from any future investments in fossil fuels.
''If you don't have any funding in fossil fuels, and you don't intend to, then make that proclamation.''
A University of Otago spokeswoman said the university could only invest in securities approved by the Minister of Finance.
''It is quite clear what we do and we don't invest in ...
''The clause in the policy relating to ethical investing specifies that the university has a commitment to ethical, or socially responsible, investing and any investment must necessarily consider social good, as well as financial return.''