Carbon-Friendly Investment Policy

Policy Statement

An-Najah National University is committed to promoting environmental sustainability through its investment strategies. This policy outlines the University’s commitment to prioritizing investments in carbon-friendly industries that support the global transition to a low-carbon economy. By actively directing financial resources towards renewable energy, green technologies, and industries with low carbon footprints, An-Najah aims to align its financial activities with its broader sustainability goals and contribute to the fight against climate change.

 

Purpose

The purpose of this policy is to:

• Encourage Responsible Investment: Ensure that the University’s financial decisions contribute to reducing global carbon emissions by supporting industries that promote sustainable practices.
• Support Low-Carbon Industries: Prioritize investments in industries that focus on clean energy, sustainable infrastructure, and technologies that minimize environmental impact.
• Align with Global Climate Goals: Ensure that the University’s investments are in line with global efforts to mitigate climate change, including the goals of the Paris Agreement to limit global temperature rise.
• Reduce Financial Exposure to High-Carbon Industries: Actively divest from industries heavily reliant on carbon-intensive processes, such as coal, oil, and gas.

Scope

This policy applies to:

• All investment portfolios managed by An-Najah National University, including endowments, trusts, and financial reserves.
• Any financial investments, both direct and indirect, in industries that impact environmental sustainability and carbon emissions.
• New investment decisions, as well as the reevaluation of existing investments, to ensure they align with the University's sustainability and carbon-reduction goals.

Principles

1. Prioritizing Carbon-Friendly Investments

 

• The University will prioritize investments in industries that demonstrate a commitment to sustainable energy solutions, carbon capture technologies, and environmentally friendly practices.
• Investments will focus on sectors such as renewable energy (solar, wind, geothermal), energy efficiency technologies, sustainable agriculture, green infrastructure, and electric mobility.

2. Reducing Exposure to High-Carbon Industries

• The University will reduce its financial exposure to high-carbon industries, such as those involved in the extraction, production, or distribution of fossil fuels, including coal, oil, and natural gas.
• Over time, the University will divest from such industries, ensuring a gradual and responsible transition to a more sustainable investment portfolio.

3. Promoting Green Innovation

• An-Najah National University will seek out investment opportunities in green technologies that advance the transition to a low-carbon future. These include innovations in clean energy production, carbon capture and storage, sustainable waste management, and green building practices.

4. Engagement with Ethical Funds

• The University will engage with ethical investment funds that prioritize environmental, social, and governance (ESG) criteria. These funds must demonstrate strong commitments to reducing carbon emissions and fostering long-term sustainability.
• The University will actively participate in responsible investment networks that share best practices in sustainable investing and collaborate on global climate goals.

5. Monitoring and Evaluation of Investments

• The University’s investment committee will regularly monitor the carbon impact of its investment portfolio, ensuring that all investments meet the carbon-friendly criteria outlined in this policy.
• Annual evaluations of investment performance will be conducted to assess progress toward the University’s carbon-reduction targets. Results will be shared with key stakeholders to maintain transparency and accountability.

Responsibilities

• Investment Committee: The Investment Committee is responsible for ensuring that all investment decisions align with the goals of this policy. They will oversee the evaluation and adjustment of the University’s portfolio to reduce exposure to carbon-intensive industries and increase investments in carbon-friendly sectors.

 

• Sustainability Office: The Sustainability Office will provide guidance and technical expertise to ensure that investments align with the University’s broader sustainability objectives. They will also collaborate with the Investment Committee to identify potential carbon-friendly investment opportunities.
• Finance and Procurement Department: Responsible for the execution of investment strategies that prioritize sustainable and low-carbon industries, while phasing out investments in high-carbon sectors.

 

Investment Strategy

1. Short-Term (1-2 Years):

• Conduct a review of all current investments to identify and divest from high-carbon industries.
• Begin reallocating funds toward carbon-friendly sectors, with a focus on renewable energy and green technology.
• Set a clear timeline for divestment from fossil fuel-related investments.

2. Mid-Term (3-5 Years):

• Increase the proportion of investments in low-carbon industries to at least 50% of the total investment portfolio.
• Continue exploring new opportunities in sustainable technologies, including battery storage, electric vehicles, and sustainable urban development.

3. Long-Term (5+ Years):

• Achieve a fully carbon-friendly investment portfolio, with no exposure to fossil fuel industries.
• Establish An-Najah National University as a leader in sustainable investment practices, showcasing its commitment to global carbon reduction efforts.

Reporting and Transparency

• The University will publish an annual sustainability investment report, detailing the carbon footprint of its investment portfolio, the progress made toward divestment from carbon-intensive industries, and any new investments in carbon-friendly sectors.
• Transparency will be maintained throughout the process, with regular updates shared with the University community, donors, and external stakeholders.

Collaboration and Advocacy

An-Najah National University will:

• Work with international networks and green investment funds to promote sustainable investment practices.
• Encourage other educational institutions to adopt similar carbon-friendly investment policies.
• Advocate for the development of national policies that support investment in renewable energy and low-carbon industries.

Conclusion

An-Najah National University is dedicated to ensuring that its financial decisions reflect its commitment to sustainability and carbon reduction. By prioritizing investments in carbon-friendly industries, the University will contribute to global efforts to combat climate change while positioning itself as a leader in sustainable investment practices. Through responsible financial management, An-Najah will play a crucial role in shaping a low-carbon, sustainable future.

Effective Date: Jan 16, 2022

Review Date: Jun 25, 2024