Aberystwyth University is planning to decrease its investments in tobacco and arms as part of its new investment policy.
Developed by the University’s Investment Committee and approved by the Council, the policy aims to make investment decisions more responsibly.
The revised guidelines build on the 2019 policy which focused on the University's belief that climate change poses a 'systemic threat'.
The committee’s plan is to achieve a net zero portfolio in harmony with the University's ambition to become carbon neutral by 2030.
To reach that goal, decisions would take into consideration the potential for harmful impact by certain sectors on society and environment.
These sectors include controversial weaponry, tobacco, violators of the UN Global Compact, and entities that defy international law.
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New investment advisors and managers have been recruited to enforce this policy, and new pooled investment funds have been constituted that follow stricter Environmental, Social and Governance (ESG) criteria.
Simon Crick, director of finance and planning at Aberystwyth University said: "Aberystwyth University has succeeded in taking significant steps to decarbonise its investment portfolio over recent years and this new policy further underlines our commitment to socially responsible investment.
"The new policy means we will put greater emphasis on social aspects of investments such as equality and diversity, as well as environmental issues, and focus in greater detail on potential indirect investments that may contravene the environmental, social and governance beliefs we have set out.
"The new policy is also designed to address some of the concerns raised in the light of recent international events.
"The tightening of the policy should reduce further the very small proportion of the University’s funds that may be invested indirectly in companies that do not meet our criteria, and will mean even greater scrutiny on the way our investments are held."
The University is still in the process of establishing the new funds.
It plans to share the information publicly through its website in the next financial year.
The University continues to require its Investment Managers to be signatories to the Principles for Responsible Investment, an initiative established under former United Nations secretary-general Kofi Annan.
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