Ethical Investment
Newcastle University is committed to embedding Environmental, Social and Governance (ESG) criteria within our investment approach in accordance with our sustainability commitments.
Investing responsibly
Newcastle University's endowment investments are governed by the University’s Ethical Investment Criteria. This criteria is integrated into the University's Endowment Investment Policy and it aims to ensure that the University's long-term investments are socially and environmentally responsible. As part of this, the criteria specifies that the University does not permit investment in certain types of companies.
Specifically, the University does not allow investment in:
- Tobacco related companies,
- Companies making revenue from the extraction and production of fossil fuels,
- Companies manufacturing armaments,
- Companies related to pornography,
- Companies related to gambling.
More details on all of the above and more can be found on the University's dedicated webpage here.
A full list of investment holdings and quarterly sector analysis are available on the Financial Information webpage under 'Investment Portfolio list by year'.
Details on the action we are taking towards addressing climate change through our investments are featured within our 10-Point Climate Action Plan. You can also find out more about our approach to responsible investing on the University's blog here, and on our Sustainability Team blog here.
University Finance Committee
Oversight of University Investments is conducted by University Finance Committee, which includes student representation by the President of the Students' Union. A member of the University’s Sustainability Team attends one meeting of Finance Committee per year where fund managers provide their annual report, including ESG analysis.
COP26 Declaration for Asset Owner Climate Expectations
In November 2021, Newcastle University became one of the founding signatories of the COP26 declaration for asset owner climate expectations. We engage with our fund managers to progress the aims of setting minimum expectations to drive change in the sector.
Divestment Q&A
Explore our answers to some of the University's most commonly asked questions about ethical investment.
Still unsure? Contact the team at sustainable-campus@newcastle.ac.uk.
What are University investments?
The University has two investment funds, University general funds and Endowment funds:
- General funds are held in bank deposits rather than risk bearing investments as access is required for liquidity and to fund capital expenditure as required.
- Endowment funds are donations, mainly from individuals, received either through a donor’s will or through donations during their lifetime. Use of endowment funds is governed by the Trustee Act alongside relevant case law. The University is required to invest endowment funds in order to gain a reasonable rate of return to finance the University activities that they were donated for.
Are student fees invested in fossil fuel companies?
No. The University does not invest student fees in equities; student fees instead contribute to the University’s general funds.
Additionally, following University policy, as of early 2020 Newcastle University has divested all endowment funds from companies making revenue from fossil fuel extraction.
How are endowment funds managed?
Endowment funds are invested in equities, bonds and an Alternative Investment Fund (AIF).
The University appoints fund managers to invest in equities on the University’s behalf. Appointment of fund managers and allocation of funds into bonds/AIFs is managed via regulated procurement processes. The University Finance Committee, the membership of which includes student representation, oversees this.
What is the value of the University's endowment funds?
Details of Newcastle University's endowment investments are published regularly (though with a 6 month delay to protect commercial sensitivity). These figures, as well as more information about University investments, can be found on the University's Freedom of Information pages.
Can I find out more about which companies endowments are invested in?
The University publishes an annual report which shows where funds are invested.
Why is the information not more up to date?
There is a delay applied on the release of portfolio information due to commercial sensitivity.
The University has recently committed to releasing quarterly information on the breakdown of investments by sector which will be reported into University Finance Committee.
Who is responsible for reviewing the University's investment strategy?
The University Finance Committee are tasked with monitoring and reviewing the University’s investment strategy. Find out more about the Committee’s role and membership, which includes student representation from the President of the Students’ Union.
What about environmental considerations beyond fossil fuels?
The integration of environmental, social, and governance (ESG) considerations across the University's investment strategy is governed by the Endowment Investment Policy, of which the Ethical Investment Criteria are part, and by the Environmental Sustainability Policy.
The University is committed to aligning its sustainability objectives with its investment strategy while considering exposure to climate risk throughout. This can be seen in our Climate Action Plan and will also be reflected in upcoming tender processes to appoint equity fund managers.