Socially responsible investment policy

We are committed to ensuring that we make investment decisions responsibly and with integrity.

This policy for ethical investment has been developed to allow the University to pursue an ethical approach while minimising any negative effect on its investment returns and is mindful of the Charity Commission guidance on the duties of trustees to invest to support delivery of charitable purpose.

In making investment decisions the University expects its appointed Investment Managers to invest in accordance with this SRI policy. Investment Managers are expected to encourage good behaviour or discourage poor behaviour through the screening of investments, either positively or negatively, and through the direct engagement with companies.

Policy statement

The University’s investment policy prohibits the direct investment in companies, including sovereign bonds, based upon the following parameters:

Tobacco: any companies involved in producing and distributing tobacco products where revenues are expected to exceed 10% of global revenues;

Armaments: any companies producing weapons and weapon systems, including cluster munitions and antipersonnel landmines.

Ethical conduct: any companies that do not have a Code of Ethics Policy, such as the UN Compact Principles (or similar); or such companies that display poor Environmental, Governance and Social practices and show little sign of improving.

The University seeks to avoid harm and will only invest in companies that meet fundamental responsibilities in the areas of human rights, labour standards, environment and anti-corruption.

All investee companies must comply with the UN Compact Principles and operate in ways that:

• Support and respect the protection of internationally proclaimed human rights and make sure they are not complicit in human rights abuses.
• Eliminate all forms of forced and compulsory labour and discrimination in respect of employment and occupation and effectively abolish child labour.
• Promote greater environmental responsibility.
• Work against corruption in all its forms, including extortion and bribery.

Fossil fuels:

• The university has divested itself of its investment in companies directly involved in the extraction of fossil fuels.
• The university prohibits investments in companies trading, transmitting, distributing or supplying fossil fuels, where such revenues in the aggregate are expected to exceed 10% of global revenues.
• The university prohibits investments in companies generating power by utilising fossil fuels, where such revenues in the aggregate exceed 10% of global earnings.

Where investments are made by third-party managers in pooled funds or similar vehicles, the University’s requirement is that wherever practical, the funds in question should seek to avoid direct investment in companies that fall within the exclusion in the University’s Socially Responsible Investment policy.

Monitoring and review

The University will publish this policy and a listing of all investment holdings on the University website on an annual basis. Any staff or students who wish to make representations regarding areas that should be covered by this policy, or the current or future investments of the university, should contact finance-cfo@cardiff.ac.uk.

The Investment and Banking Sub Committee will consider annually whether other emerging areas of widespread pressure for divestment should be incorporated into this policy.

The University commits to having student representation on the Investment and Banking sub-committee where investments are discussed.

Policy control information

This policy applies to the investments of Cardiff University.

The funds of the Cardiff University Pension Fund do not belong to the University. The investment of these funds is the responsibility of the scheme’s trustees.