Sustainability

Responsible investment

Significant action has also been undertaken to use the University’s investments to support the transition to a low carbon economy.

Responsible investment policy

A new Responsible Investment Policy was adopted in 2016 and the proportion of Edinburgh’s direct portfolio linked to fossil fuels has halved since 2013 and fallen by almost 90 per cent since 2008. Following a review the University has agreed to exclude coal and tar sands and controversial weapons from its direct investments.  More recently, the University has moved its investments into the Global Alpha Choice Fund, which screens out companies with any significant interests in armaments, tobacco, gambling and pornography.

The University has reduced its exposure to fossil fuels through its investments and this has resulted, as shown by analysis undertaken by financial advisors Mercer in 2016 that the University’s carbon footprint of direct investments (measured in carbon intensity of millions of dollars of sales) is 48% lower than the relevant benchmark. In November 2014, this figure was 14% lower than the benchmark and in November 2015 the figure was 20%.

This change related to the University’s decision to sell stocks worth £2.5 million in order to divest from coal and tar sands companies, the most polluting of all fossil fuels. A recent report by financial advisers Mercer, highlighted the move away from fossil fuels, as it stated that the proportion of Edinburgh’s direct portfolio linked to fossil fuels has halved since 2013 and fallen by almost 90 per cent since 2008. It is now negligible at around 2% of our overall direct portfolio of investments or 1% of total endowment fund. As the University continues to seek lower carbon investments (with similar returns and risks as current investments) the carbon intensity of its investments will reduce further, reducing scope three carbon emissions.

 

SRS report direct investments visual [ 2014: 14% lower, 2015: 20% lower, 2016: 48% lower]
The University’s carbon footprint of direct investments is increasingly lower than the agreed benchmark. Measured in carbon intensity of millions of dollars of sales.

Read more about responsible investment