Sustainable Investment Policy

Policy adopted in: 2020

Policy updated in: 2023

Application: Applicable to all the stakeholders

Purpose:

Galgotias University is committed to responsible investment practices that consider not only financial returns but also environmental, social, and governance (ESG) factors. This policy outlines our comprehensive framework for integrating sustainability principles into our investment decisions, aligning with India's growing focus on Environmental, Social, and Governance (ESG) considerations in financial markets.

Policy

The University will strive to:

• Align investments with our mission and values:We invest in a manner that reflects our commitment to environmental sustainability, social responsibility, and ethical governance. This means actively seeking opportunities that contribute to a more sustainable future while upholding our core values.
• Maximize long-term returns:We recognize the importance of financial sustainability for the University. We integrate ESG factors into our investment analysis to identify opportunities that offer both strong financial performance and positive societal impact. By considering ESG risks and opportunities, we aim to make informed decisions that contribute to the long-term health of our investment portfolio.
• Manage risk:We understand that ESG factors can present both risks and opportunities. We consider ESG risks alongside traditional financial risks (e.g., market risk, credit risk) to make informed and responsible investment decisions. This comprehensive risk assessment allows us to identify potential challenges associated with ESG issues in specific sectors or companies and make strategic investment choices that mitigate these risks.

Investment Strategy

• Positive Screening:We prioritize investments in companies that demonstrate strong ESG practices across their operations. This includes considering a company's performance in areas like:
  • Environmental stewardship (e.g., resource efficiency, pollution control, renewable energy integration)
  • Social responsibility (e.g., fair labor practices, community engagement, diversity and inclusion)
  • Good corporate governance (e.g., transparency, accountability, ethical conduct)
  • Sustainable supply chain management (e.g., responsible sourcing practices, minimizing environmental and social impacts throughout the supply chain)
• Negative Screening:We exclude investments in companies with significant negative impacts in areas that conflict with our values and sustainability goals. This include companies involved in:
  • Fossil fuels (depending on the University's specific risk tolerance and investment goals. The policy can outline a timeline for divestment from fossil fuels or a preference for companies actively transitioning to clean energy)
  • Controversial weapons
  • Tobacco
  • Severe human rights violations

Implementation

• Investment Committee:The University's investment committee is responsible for overseeing the implementation of this policy. The committee is composed of individuals with expertise in finance, sustainability, and legal considerations. They ensure ESG factors are considered throughout the investment decision-making process, from setting investment goals and asset allocation to evaluating potential investments and monitoring portfolio performance.
• Investment Managers:When selecting external investment managers, the University considers their ESG integration practices and align with those that demonstrate a strong commitment to sustainability. The University establishes a set of ESG criteria that potential investment managers must meet to be considered.
• Engagement:The University engages with investee companies to encourage positive changes in their ESG practices. This engagement can involve constructive dialogue, proxy voting on ESG resolutions, and collaborating with other investors to promote sustainable business practices.
• Reporting:The University regularly monitors and reports on the performance of its investments, including progress towards its sustainability goals. The report include metrics on the ESG performance of the investment portfolio, the impact of the University's investments on sustainability issues, and engagement activities with investee companies.

By implementing this Sustainable Investment Policy, the University demonstrates its commitment to responsible stewardship of its financial resources and contributes to a more sustainable future. This policy positions the University as a leader in integrating ESG considerations into investment practices within the Indian higher education sector, setting a strong example for other institutions.