Skip to main content
Public information

Socially responsible investment policy

Cardiff University is committed to ensuring that it makes 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 (CC14 Investing Charity Money).

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.

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’s investment policy prohibits the direct investment in companies 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.
  • Code of Ethics: 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 ESG (Environmental, Governance and Social) factors and show little sign of improving.
  • UN Compact Principles: all investee companies must comply with the UN Compact Principles. This means that companies must operate in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.
  • 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.

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