The University of Nottingham

Sustainable investments - positive impact

Ethical investment of University endowments can make a real difference and deliver positive real-world change. In 2020, the University of Nottingham committed to deliver on its desire to invest its £60M+ endowment in line with the University’s strategy and commitment to sustainability. Investment managers, with a strong track record and commitment to ESG and the UN SDGs were appointed.

The underlying investments (now £71+ million) are social as well as climate focused. Alongside green bonds and renewable energy infrastructure are investments such as the Refugee Better Outcomes Partnerships; delivering programmes to provide support to refugees to transition out of asylum accommodation into the community.

In turn, the good return on investment generated has enabled the University to bolster its offer of studentships, especially to those from underprivileged backgrounds.

What gets measured, gets managed, so clear impact reporting has been crucial, as has ongoing collaboration, e.g. on research into University approaches to net zero investment strategies.

Annual carbon savings achieved with the initiative:

• CO2t savings : 10,570 tonnes of CO2e avoided, equivalent to the carbon absorbed by 174,930 trees.

What the Judges Thought

The judges liked action on embedding sustainability into the investment decisions and although many universities have adopted a similar approach, not every institution has.  This action can act as a pathfinder for others to follow and provide reassurance is they have a lower risk appetite for change.  Investing in ESG funds is no longer gold standard, with certain progressive institutions choosing to invest in positive impact funds.

Very strong application that demonstrates significant leadership, particularly at a senior level but also positively impacting students and members of the public.

What it Means to Win

"I am delighted that our sector leading approach to investment is being recognised through the Green Gown Awards. Our approach reflects  our vision, strategy and philanthropic spirit upon which we were founded and at the same time supports solutions that further the UN Sustainable Development."

Professor Shearer West, Vice-Chancellor

Top 3 Learnings

1. Investments can deliver positive impact without sacrificing strong financial returns.
2. Engaging impact reporting has been invaluable to celebrate success and engage stakeholders such as alumni.
3. It’s not as difficult as you may think, and it’s been a catalyst for embedding sustainability within finance.