Reviewing our Responsible Investment Policy: FAQs

The Responsible Investment Policy (2025) has been published following a University-wide consultation with students and staff. This page sets out the findings of the consultation and answers frequently asked questions (FAQs) about the University's investments.

University-wide consultation

In May 2024 the University Executive announced a University-wide consultation and the creation of two working groups to review and inform its future investment approach.

Between May and September 2024, all University students and staff were invited to share their views on proposed changes to the University's Responsible Investment Policy in an anonymous survey. Independent researchers analysed the 1,928 survey responses in Semester 1, 2024/25.

The student and staff consultation survey provided valuable insight to the review process and highlighted an appetite for change in key areas. We are grateful for the contributions received and engagement shown, and a full analysis of the findings can be viewed in the report below.

While many of the opinions expressed produced clear trends, it is important to acknowledge that some of the views indicate an unfamiliarity with some of the progress made since the publication of the previous policy – for example, concerns shared about issues already resolved or about measures now creating positive impacts – highlighting a need for clearer communication on these topics. However, the policy review has considered all insights and sought to address the underlying concerns and expectations driving opinions.

 

The working group met during May and June 2024. A report with recommendations was considered by University Executive and the University’s governing body, University Court, later in June 2024.

The University Court issued a statement to staff and students following its consideration of this review:

A statement from the University Court | The University of Edinburgh

The summary report produced by the working group and its Terms of Reference can be accessed below.


The working group was established to consider the investment approach in the international context, including with respect to UN-backed Principles for Responsible Investment and our University's values.

The summary report produced by the working group and its Terms of Reference can be accessed below:


Frequently Asked Questions

The purpose of the Responsible Investment Policy is to ensure the University’s investments uphold our values and commitment to social and civic responsibility and sustainability, whilst meeting the objectives of the University's Endowment Fund.  

The Policy operationalises the University’s commitment to responsible investment decision-making and provides mandatory requirements for both the Investment Committee and the asset managers seeking to grow the Endowment Fund on behalf of the University.   


Updates to the Policy include: 

  • A commitment to reduce carbon emissions from investment portfolios in line with the University’s net zero target and following a 1.5°C pathway, from a 2018 baseline. 
  • Exploring how to incorporate best practice guidance on nature and biodiversity into the Endowment Fund, using advice from the Taskforce for Nature-related Financial Disclosures. 
  • Enshrining a commitment to social impact investing within the policy, recognising the existing Social Investment Fund and reporting on its impact. 
  • The establishment of a new Responsible Investment Advisory Group to consider the integration of human rights principles into investment activities and to provide oversight and advice on responsible investment issues.

In parallel to the Responsible Investment Policy consultation in summer 2024, two working groups met to address key concerns raised by student and staff communities around the definition of ‘controversial weapons’ and ‘investment approaches in the international context’. 

As recommended by the second working group, the University Court agreed to establish a new advisory group to carry out ethical review and due diligence of the University’s investments and to advise on the application of definitions relating to exclusions. 

With this in mind, the Responsible Investment Policy Statement (2025) commits to addressing these challenges with the support of the new Responsible Investment Advisory Group. This Group will address issues including: 

  • A review of the role of human rights in the context of the University’s investments 
  • A representations process for students and staff to express views on investment issues 
  • Any agreed changes to the definition of controversial weapons 
  • Exploring a more strategic approach to how we engage with the companies we invest in. 

The Group’s first meeting will be held early in the new academic year. 


The University’s governing body, the University Court is ultimately responsible for the stewardship of the Endowment Fund and the approval of investment strategies and policies, including the Responsible Investment Policy. To support the University Court in this task it has delegated some responsibilities to two of its committees.   

The Policy and Resources Committee sets the Terms of Reference for the Investment Committee and oversees its activities. 

Policy and Resources Committee 

The Investment Committee manages the investment portfolio to deliver the objectives it is set by the Policy and Resources Committee. That includes meeting the requirements of the responsible investment policy statement and generating sufficient financial returns to fund charitable educational activities. 

Investment Committee 

The Investment Committee appoints professional investment fund managers and monitors their performance against benchmarks. 

Endowment Fund Managers and Types of Investment 

The Responsible Investment Policy Statement (2025) introduces a new group to advise the University on ethical and due diligence matters and wider responsible investment issues.

Responsible Investment Advisory Group

The University’s Treasury balances are managed separately to the Endowment Fund by the Finance Directorate.  

Treasury

The Social Investment Fund is managed by the Environmental, Social and Governance (ESG) Advisory Group, which reports into the University Executive and Investment Committee as required.

ESG Advisory Group


The Endowment and Investment Fund is made up of the many philanthropic donations, gifted as endowments, for the benefit of the University's charitable educational purpose. 

The Endowment Fund has two primary objectives: to provide income to support the charitable activities specified by donors and to grow in value over the long-term to ensure that future generations of students and staff can benefit from the endowment as well as the present generation.  

Endowment Fund reports 


The University’s Treasury manages the University's short to medium-term cash balances, enabling the University to operate day-to-day. This includes ensuring tuition fee income and staff salaries are safely managed in line with the University Treasury Management policy.

Treasury 


The consultation highlighted a need to improve transparency and communication of the University’s investment efforts. This will be regularly updated to capture news and progress. 

University investments overseen by the Investment Committee are published biannually: 

Investments | Information Compliance 

Reports | Finance 

Annual Report and Accounts  

Principles for Responsible Investment | Social Responsibility and Sustainability 

In addition to existing reports, the new responsible investment policy commits the University to annual reporting on the climate metrics of the Endowment Fund and social impacts of the Social Investment Fund. 

The first annual report on climate change impacts of the Endowment Fund will be published starting 2026. 

The first Social Investment Fund impact report will be published in November 2025. 

The Social Investment Fund 


The University recognises the substantial opportunities it has for positive impact in the world by taking action to address climate change, nature loss and social inequality.  

As a large institutional investor, with a diversified, long-term portfolio, the University could be described as a “universal owner”.  

Universal Ownership (PRI)

According to the Principles for Responsible Investment: 

“The active ownership model gives more weight than traditional portfolio management to inter-generational concerns and to the sustainability of the economy as factors affecting future risk-adjusted returns.”  

As a Universal Owner, the University could seek a more proactive approach towards generating wider positive social and environmental impact across its diverse range of investments.  

The Principles for Responsible Investment set out guidance for investors seeking to explore an active ownership approach. 

To date, the University has not formally adopted an Active Ownership approach, but the Responsible Investment Policy Statement (2025) commits to explore this through the new Responsible Investment Advisory Group. 

One example of active ownership is the ongoing initiative supported by the University of Edinburgh and led by the University of Cambridge, calling for banking products that do not finance fossil fuel expansion. 

UK universities launch call for banking products that avoid financing fossil fuel expansion 


The University enlists fund managers to invest on its behalf, complying with the Responsible Investment Policy.  

Endowment fund managers and types of investment 


The University will always seek to align its investment approach with its mission and values. This involves staying attentive to changing global contexts and uncertainties – an ongoing process that will be informed by the guidance of the new Responsible Investment Advisory Group. 

The Policy will be updated again to reflect the advice and input of the Responsible Investment Advisory Group. The Group’s first meeting will be held early in the new academic year (2025/26).


If you have further questions, please contact: responsible.investment@ed.ac.uk

Related links

Responsible Investment

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