Newcastle University is committed to embedding Environmental, Social and Governance (ESG) criteria within our investment approach in accordance with our sustainability commitments.
The following exclusions are applied to University investments:
Tobacco related companies,
Companies making revenue from extraction and production of fossil fuels,
Companies manufacturing armaments.
The policy also describes the process by which any member of the University community can raise concerns over specific holdings within University’s investments.
A full list of investment holdings, and quarterly sector analysis is available on the Financial Disclosures webpage.
Details on the actions we are taking to address climate change through our investments are featured within our 10-Point Climate Action Plan.
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.
You can find out more on our approach to responsible investing through this blog post.
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.
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.
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.
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 here.
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.
The University Finance Committee are tasked with monitoring and reviewing the University’s investment strategy. You can find out more about the Committee’s role and membership, which includes student representation from the President of the Students’ Union, here.
The University is committed to aligning its sustainability objectives with its investment strategy while considering exposure to climate risk throughout. This will be reflected in upcoming tender processes to appoint equity fund managers.
