The approach the University takes to responsible investment is rooted in its focus on social and civic responsibility, and a vision to make the world a better place. Changes to our Responsible Investment PolicyThe University is in the process of reviewing its Responsible Investment Policy Statement (2016).A consultation survey outlining proposed changes to the policy ran from 31 May - 30 August. An analysis of the responses will be undertaken in Semester 1, 2024/25. The findings of the review and survey responses will help to inform the new Responsible Investment Policy.Reviewing our Responsible Investment PolicyWhat is Responsible Investment?Responsible investment is an investment strategy that integrates environmental, social, and governance (ESG) factors into investment analysis and decisions. It recognises that environmental and social factors can have an impact on the financial value of an investment and also that investments have an impact on the world around us. Responsible investment acknowledges that long-term prosperity requires a move away from short-term profit as the only definition of value.Responsible Investment underpins our Strategy 2030 vision and is embedded in the University’s financial decision-making and reporting processes. Document Responsible Investment Policy Statement (2016) (345.91 KB / PDF) The University of Edinburgh Investment and Endowments The University of Edinburgh is seen as a global leader in responsible investment and was the first University in Europe to become a member of the United Nation’s Principles for Responsible Investment. The University has scored ‘straight As’ for its responsible investment reporting in the last few years. The UN Principles for Responsible Investment Fossil fuel divested since 2021Divestment involves the removal of an organisation's direct and pooled investments in companies involved in the extraction and production of fossil fuels from its portfolio.In 2014, staff in the University’s Finance and Social Responsibility and Sustainability teams worked with external fund managers to undertake a major review of the University’s investment portfolio and its carbon exposure.In 2015, students joined with staff to shape the University’s divestment approach as part of an extensive working group. This resulted in the end of coal and tar sands investment and a commitment to prioritise low-carbon investments.Following a further review in 2018, the University announced plans to complete divestment from direct and pooled investments in fossil fuels. The University completed full divestment from fossil fuels in 2021.Why we are fossil fuel freeThe University’s divestment announcement Investing in our vision to make the world a better place If divestment signifies what the University is against, social impact and climate positive investments are what we stand for. The University is investing in a number of social and environmental causes, whilst aiming to nurture a community of social entrepreneurship among students and staff. Investing for Good: Social investment and enterprise strategy Socially Positive InvestmentSocial investment means investing in organisations, fund and projects that deliver a social benefit alongside a traditional financial return, such as organisations working to dismantle poverty or by supporting social enterprises to upscale their work.As of 2021, the University has allocated £8 million to invest in socially-positive activities. As of January 2024, over £7 million of the fund has been committed. The University will do this by taking a rigorous approach to investments that deliver an acceptable return, whilst also delivering multiple benefits for society, the economy and the environment.Find out more about the University's Social Investment FundProsper Social FinanceDid you know that the University is home to Prosper Social Finance, the UK's first student-run socially responsible investment fund? Prosper run an equity portfolio underpinned by socially positive values and ESG criteria. As a social enterprise, all profits from Prosper's investments are invested in local charities, projects and other social enterprises.Find out more about Prosper Social Finance (external)Climate positive investmentsInvestment in renewable and sustainable technologiesSince 2017 the University endowment fund has committed to invest up to £60m in renewable energy and sustainable technologies and has reduced the carbon footprint of its equity investments by over 70%.In 2020, Edinburgh became the first University to invest in HSBC's Green Deposits scheme. The Programme finances businesses and projects that promote the transition to a low-carbon, climate-resilient and sustainable economy, such as renewable energy, efficient buildings, sustainable waste management and clean transportation. University invests £5 million in Green ProjectsRestoration of forests and peatlands in ScotlandIn October 2021, the University announced a multi-million-pound, long-term commitment to capture and store its unavoidable carbon emissions from aviation, and benefit nature, through restoring peatlands and expanding forests in Scotland.Carbon Sequestration plan Collaboration for sector-wide changeThe University is part of a number of networks and initiatives aiming to accelerate the divestment of the Higher Education sector more broadly. These include: The PRI Leaders Group: A UN-convened Group showcasing PRI signatories engaging in leading responsible investment practices. Find out more about the PRI Leaders Group Responsible Investment Network for Universities (RINU): A higher-education specific network aiming to develop and share knowledge, build a community of practice, and work together to champion social and responsible investment. Find out more about RINU Reviewing our Responsible Investment Policy A review of the Responsible Investment Policy has been ongoing for the past year. Proposals for updates to the Policy have been shared with University staff, students, and focused working groups for review. Socially positive investments The University is investing up to £8 million in socially positive causes across Edinburgh and the UK. Find out moreFor more information on the University's approach to responsible investment, or to speak about ways staff and students can get involved, please contact the Department for Social Responsibility and Sustainability. General enquiries Social Responsibility and Sustainability Contact details Social media: @edsust Work: +44 (0)131 651 3000 Email: SRS.Department@ed.ac.uk This page was updated on 4 Dec, 2023 This article was published on 2024-10-01
