ABSTRACT
As of July 2013, the University of Edinburgh held endowment funds valued at over £280 million. This is one of the largest such funds in the UK, made up of numerous philanthropic donations which must be invested for a financial return, and these returns used for specified purposes. In January 2013, Edinburgh became the first higher education institution in Europe, and the second globally, to adopt the UN-supported Principles for Responsible Investment (PRI). Concurrently, students, in particular through the student organisation People & Planet, have been vocally campaigning for ‘ethical’ investment, with a particular focus on calling for divestment from fossil fuels industries, reflecting a growing global movement. In 2014, in light of our commitment to the PRI, and in order to respond to points raised by campaigners within and beyond the University community, we have been reviewing our principles, values, policy and practices related to the investment of our endowment funds. This includes taking into account the views of financial and ethical experts as well as students, staff and the local community. This case study first details the social responsibility and investment contexts at the University of Edinburgh, and then presents and discusses our investment consultation. This case study concludes that establishing agreed-upon values and principles for a large institution, and defining how these are to be interpreted into investment practices, is challenging. Nevertheless, consulting widely has been a worthwhile exercise in terms of demonstrating a commitment to engaging with and listening to stakeholders, gathering varied views to complement expert knowledge and highlighting the interest of our stakeholders in being involved in thinking through complex ethical issues.
