The University of Edinburgh will be part of a fossil-free investment fund announced by a coalition of UK universities, colleges, and other institutions.
The cash fund will facilitate the creation of low-risk, short-term investments which exclude any companies contributing to fossil fuel expansion.
The coalition has indicated they collectively initially expect to invest nearly £500m in the fund, which is expected to launch towards the end of 2025.
Led by the Banking Engagement Forum at Cambridge University, there are 79 higher education institutions in total, with more expected to join.
David Gorman, Director of Sustainability and Social Responsibility at the university, said:
“This initiative highlights how cross-sector research can translate into real-world solutions for complex challenges.
“We’re proud to support the quasi-Money Market Fund as a seed investor and are encouraged by the coalition’s growth, which demonstrates the strong demand for products that avoid financing fossil fuel expansion.”
The coalition announced in mid-October that Amundi Investment Solutions had been nominated as its asset management partner after nearly two years of searching.
This means that Amundi, a leading European asset management company, will have the role of filtering out potential investments which would contribute to fossil fuel expansion.
Jean-Jacques Barbéris, Amundi’s Head of Institutional & Corporate Clients Division and ESG said that:
“[Amdani] will facilitate the transition to an inclusive, low carbon economy while delivering stable, long term sustainable value for clients.”
This is part of a broader movement of universities taking on a role to tackle climate change, seen as key actors in their economic and research capacities.
Edinburgh University aims to be net zero in carbon emissions by 2040 and has announced that it has completed its divestment from fossil fuels in 2021.
“Whitelee Windfarm” by ms.akr is licensed under CC BY 2.0.