Deciding what to invest in
Environmental, social and governance issues can affect long-term investment risk and return. These include climate change, nature-related risks, human rights, labour standards, business ethics and good governance.
The University considers these issues through its governance process, using information and reporting provided by the OCIO and investment managers.
Our responsible investment approach
Research and market practice recognise that ESG factors can be relevant to long-term investment performance. They can also help investors understand wider risks and opportunities.
The OCIO uses ESG screening, manager monitoring and stewardship reporting to support alignment with our Responsible Investment Policy (docx - 69Kb)
Higher-risk areas
Higher-risk areas
Some sectors and activities can involve higher ethical, legal, reputational, environmental or human rights risks. These risks are considered through due diligence, ESG screening, monitoring and stewardship.
As a minimum, the University’s investments must comply with applicable law and regulation, including UK financial sanctions. The Investment Sub-Committee can ask the OCIO for further information where relevant issues are identified.
Climate change and fossil fuel exposure
Climate change and fossil fuel exposure
Climate change is an important long-term investment issue. The University considers climate-related risks and opportunities through OCIO reporting, ESG screening and stewardship activity.
More information on fossil fuel-related exposure and responsible investment reporting is included in our Annual Responsible Investment Update.
Stewardship and engagement
Stewardship and engagement
Stewardship is about using investor influence to encourage better practice. This can include engagement with companies, voting and escalation.
Under the OCIO model, stewardship and voting activity is carried out by the OCIO and the underlying investment managers. The University reviews summaries of this activity through its governance process.
When concerns or queries are raised
When concerns or queries are raised
The University welcomes feedback, suggestions and queries about how the Responsible Investment Policy has been applied. Where possible, feedback should include an evidence-based case. Use this form to feedback suggestions and queries.
If the Investment Sub-Committee considers that an investment may not be aligned with the Responsible Investment Policy, it will review the position with the OCIO and consider what action may be appropriate, taking account of the University’s fiduciary duty and investment arrangements.