Ethical investment policies and sustainability for UK university endowments
Investment ESG Responsible investment
More can be done by university endowments to align their investment policies with universities’ ambitions on climate change and sustainability
LCP’s survey into university endowments has found that while ethical and sustainable investment is a key driver behind their investment approach, there is more that they can be doing with their investments to help meet their stretching targets on net zero and sustainability.
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With their long-term outlook, universities are avoiding investments deemed unsustainable over the long-term (e.g. coal mining) and increasingly seeking opportunities in those with positive social and environmental impact.
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Despite universities’ ambitious net zero targets, fewer than half have made public commitments to investment in climate solutions, despite a projected $9 trillion annual global demand by 2030.
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Most universities avoid controversial weapons, but there is no consensus on broader exclusions (e.g. armaments or civilian weapons). Recent conflicts and student protests have intensified scrutiny.
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Key findings in figures
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Ambitious net zero targets
57%of universities surveyed have targets to achieve net zero for their operational emissions between 2030 and 2034 though only 31% had set a net zero target for their investment portfolio. -
Value-based exclusions
100%universities surveyed apply some form of exclusion in their investment policies based on their values. -
Tobacco
>90%of universities surveyed seek to avoid investment in tobacco companies. -
Avoiding fossil fuels
>90%of universities seek to avoid investment in some types of fossil fuel companies. -
Sustainability
50%Around 50% of universities surveyed have commitments to invest with positive social or environmental impact. -
Weapons
85%of universities avoid investment in controversial weapons. Linked with this a number of universities amended their responsible investment policies in response to the escalation of the conflict in Gaza over 2024.
