We support progress towards achieving net zero greenhouse gas emissions, both in the UK and globally, by means of our investment policy.
The mandate of the College’s investment manager, and the internal team that manages the College’s estates, is aligned with this goal.The principal objective of the College’s investment strategy is to preserve and preferably grow the real value of our endowment over the long term, having regard for our expenditure rule and the need to protect the value of College assets against erosion by inflation.
We recognise the growing importance of environmental, social and governance (ESG) criteria when selecting and managing investments. Investments are made on a total return basis; this means that there is no preference for capital growth or income. Together with our property holdings, we invests in funds rather than making direct investments. We expect all fund managers to adhere to the United Nations principles of responsible investment, to have an ESG policy, and to confirm that ESG criteria are included in their investment decisions.
Our commitment to achieving overall net zero status by 2035 will be reflected in our investment portfolio, where we will seek to achieve net zero by 2030 at the latest. Having regard for our financial return objectives, the Investment Strategy has three components:
1. Decarbonise
This will involve reducing exposure to companies that have the highest carbon emissions, and disinvesting from those companies that promote or extract fossil fuel reserves, before the end of the current Strategic Plan period in 2027.
2. Invest for positive impact
Where appropriate, we will invest in new companies that seek to have positive environmental impacts in order to speed up the transition to a low carbon economy.
3. Engage
Either through our investment manager or directly, we will engage with our investment partners to encourage the low-carbon transition of economic sectors in line with science and under consideration of associated social impacts.
Consistent with this approach, the College expects its fund managers to report on their corporate engagement and voting activity on a regular basis. We also conduct an annual ESG review of our investment portfolio.
In addition, all donations and grants to College are carefully scrutinised in respect to ESG considerations.