Financial Investments
Issues of sustainability and climate protection are highly relevant to the configuration of the University’s financial investment portfolio. With the recent revisions to the regulations on investments, concrete sustainability criteria were thus laid out for the University of Basel’s non-current financial assets. This has been strictly implemented since August 2022: besides financial requirements, the new regulations on investments also include criteria on ecological, social and governance (ESG) factors. Additionally, an investments exclusion list also needs to be considered.
The University of Basel’s non-current financial assets mainly comprise third-party funds that are raised for multi-year research projects and are not immediately required. The return generated on the funds invested in the financial market provide additional support for research and teaching projects. In order to take the sustainability objectives defined in the University Strategy into account, new regulations were drafted and adopted by the University Council and took effect on January 1st 2021. The University’s Financial Assets Committee, which is elected by the University Council and is responsible for financial investments, has established new portfolio management contracts in conjunction with these regulations. Since August 1st 2022, the new regulations have taken effect, divided into four new investment management mandates.
In accordance with these new mandates, investments are made exclusively in companies that meet minimum standards for environmental friendliness, social behavior and responsible company management (known as ESG criteria). In addition, they will take a “best in class” approach to the sustainability of financial investments: In this approach, the University of Basel aims to only invest in the top 30% companies in an industry.
Additionally, an exclusion list bars investments in companies that have a harmful effect on nature, humans or society. The exclusion criteria include companies that 1) offer addictive or harmful products or services, 2) produce or sell weapons or armaments, 3) explore, promote or process fossil fuels and 4) search for or mine precious metals or diamonds.
Goals & actions
Consider sustainability criteria in financial management of non-current assets and incremental development of a consolidated system for sustainability reporting
Sustainability analysis and report regarding ESG criteria and compliance with the exclusion list of managing banks and measurement of quarterly performance, standardized for all mandates
Investment Commitee
Consider sustainability criteria in financial management of non-current assets and incremental development of a consolidated system for sustainability reporting
Rework investment regulations to take into account sustainability issues
Investment Commitee
