Responsible investment
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.
Consultation on the revised Responsible Investment Policy
The University is in the process of revising its Responsible Investment Policy. A consultation will open on 31 May for three months to allow the University’s students and staff to share their views on the University’s investment approach.
Views sought on responsible investment
The University of Edinburgh has been recognised for its leadership in responsible investment. The University completed divestment from fossil fuels in 2021 and proactively invests in socially positive causes.
Proposed updates to the policy include:
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To incorporate commitments to socially positive investment
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To enshrine fossil fuel exclusions into the policy
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To align investment portfolios to a 1.5°C decarbonisation pathway and achieve net zero emissions by 2040
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A commitment to explore adopting nature positive approaches into investments
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To explore an active ownership approach to investments
The current Responsible Investment Policy Statement is available to read here:
What 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.
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 2021
Divestment 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.
The 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
Social 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 Fund
Prosper Social Finance
Did 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.
Investment in renewable and sustainable technologies
Since 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 Projects
Restoration of forests and peatlands in Scotland
In 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.
The 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.
Socially positive investments
Principles for Responsible Investment
Find out more
For 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
- Work: +44 (0)131 651 3000
- Email: SRS.Department@ed.ac.uk
- @edsust
Address
- Street
Department for Social Responsibility and Sustainability
The Boilerhouse
High School Yards- City
- Edinburgh
- Post Code
- EH1 1LT
This page was updated on 4 Dec, 2023