AlMaarefa University Sustainable Investment Policy

Introduction

AlMaarefa University (UM) recognizes its responsibility to align financial stewardship with its commitment to sustainability and ethical governance. This Sustainable Investment Policy is designed to guide the university’s investment decisions in a manner that supports environmental preservation, social responsibility, and sound governance (ESG) principles, in harmony with Saudi Arabia’s Vision 2030 and the United Nations Sustainable Development Goals (SDGs). ​

2. Purpose and Scope

The purpose of this policy is to integrate ESG considerations into UM’s investment processes, ensuring that the university’s financial activities contribute positively to society and the environment. This policy applies to all investment activities undertaken by the university, including endowment funds, reserves, and any other financial assets managed by or on behalf of UM. ​

3. Guiding Principles

  • Environmental Stewardship: UM commits to investing in initiatives that promote environmental sustainability, such as renewable energy projects, energy efficiency, and conservation efforts. ​
  • Social Responsibility: Investments will be directed towards organizations and projects that uphold human rights, labor standards, and contribute to community development. ​
  • Governance Integrity: UM will prioritize investments in entities that demonstrate transparent and ethical governance practices. ​

4. Investment Criteria

  • Positive Screening: Preference will be given to investments that actively contribute to ESG objectives, including companies with strong sustainability records and those engaged in social impact initiatives. ​
  • Negative Screening: UM will avoid investments in industries and companies that are inconsistent with its values, such as those involved in fossil fuel extraction, tobacco, weapons manufacturing, and activities that violate human rights.​
  • Engagement and Advocacy: The university will engage with investee companies to encourage improved ESG practices and may exercise shareholder rights to influence positive change. ​

5. Implementation and Oversight

  • Investment Committee: An Investment Committee will be established to oversee the implementation of this policy, ensuring that investment decisions align with ESG criteria. ​
  • Monitoring and Reporting: The committee will regularly review investment portfolios for compliance with this policy and report annually on the ESG performance of investments to the university’s governing body. ​
  • Policy Review: This policy will be reviewed biennially to incorporate evolving best practices in sustainable investing and to respond to changes in the global and local investment landscape. ​

6. Alignment with National and International Frameworks

UM’s Sustainable Investment Policy aligns with national regulations and international frameworks, including: ​

  • Saudi Arabia’s Vision 2030​
  • United Nations Principles for Responsible Investment (UN PRI) ​
  • United Nations Sustainable Development Goals (UN SDGs) ​

7. Conclusion

Through this policy, AlMaarefa University reaffirms its dedication to responsible investment practices that support sustainable development and ethical governance. By integrating ESG considerations into its financial decisions, UM aims to contribute to a more sustainable and equitable future. ​