Socially Responsible Investment Policy

Imperial College London’s mission is to achieve enduring excellence in research and education in science, engineering, medicine, and business for the benefit of society. This mission is advanced through research, education, and innovation, with active engagement from a diverse range of partners to ensure its effective delivery.

The College’s standing and influence are amplified through meaningful engagement with society and key stakeholders. This collaborative approach is integral to achieving the College’s mission.

The Endowment and other investments play a pivotal role in supporting the mission by generating income and aligning with the College’s vision, mission, and values. The College and its Endowment understand that investment decisions reflect and uphold the values of the institution.

The Endowment was officially established in August 2005 to generate income to support the College’s academic mission by stewarding investment assets. The Endowment’s investment in equities (circa 60% of asset value) is managed by external asset managers, those in property and private equity are managed directly by the College.

It has grown from £69.3m since inception to £542m (as of 31st July 2022), but still remains significantly smaller than those of peer institutions in the Global Top 10.

The Endowment is overseen by the Endowment Board with delegated authority from the College’s Council to which it reports annually. The Board has majority representation from non-executive members who have market experience and expertise consistent with the Endowment’s investments.

The College’s policy is to ensure that any investment decisions take into account the same social, environmental and governance concerns as the College, including pursuing an active approach to engagement with its investments in all asset classes.

Our deepest means of engagement to support ESG and the transition towards a more sustainable and lower-carbon future is through our research and education partnerships. Imperial College London has therefore designed a framework, the Imperial Zero Index (IZI), to assess annually how its energy industry research collaborators are performing in their commitment, strategy, and operational efforts towards net zero.  

Imperial expects to disengage from academic and research collaborations, as well as investments, with energy industry companies that score poorly against its criteria. IZI is currently being rolled out and will include publishing its methodology and defined scoring standards for all stakeholders.  

This new framework rates partner companies on ESG criteria, categorising them as red, amber, or green. Red-rated companies are excluded from investments altogether. Amber-rated companies will be placed on a non-invest list, preventing new investments but not requiring disposal of any current holdings, should there be any.  Green-rated companies will be open for investment at the Endowment managers' discretion. Any energy industry company not yet assessed will be considered as Amber by default until a proper assessment can be made, using the IZI where possible and appropriate.  This transparent approach, focusing initially on fossil fuel extraction, may expand to other polluting heavy-emitting industries. Imperial's involvement in the Responsible Investor Network – Universities (RINU) has been instrumental, providing peer support and guidance.  

The Index is reviewed regularly by the Socially Responsible Investment (SRI) Engagement Monitoring Panel, along with our engagement activity. The panel is chaired by the Vice-Provost for Research Enterprise and attended by the Vice-Provost for Education Student Experience, the Chief Investment Officer, and the president of Imperial College [Student] Union, and reports to the SRI Steering Group on investment matters.  

If the SRI Engagement Monitoring Panel assesses that a company’s current activities and future plans are not aligned with this policy and it has exhausted all possibilities for influence, the SRI Steering Group will recommend disengagement and divestment to the University Management Board and the Endowment Board, including disposal of any relevant investments, should Imperial have any.  

The College’s position as a world-leading institution of higher learning will be leveraged to affect positive change.

All investments within the Endowment will align with major international accords and relevant regulation and legislation. Therefore, the College and its fund managers will be signatories to the UN Principles of Responsible Investment.

Active ownership and engagement will be at the heart of the Endowment Board’s approach. Where the Endowment does not have the scale to be effective in its engagement based on the size of its investments alone, it will look to collaborate or combine resources with like-minded investors.

An Endowment Board report on the effectiveness of this approach will be given regularly to Council and President’s Board. This will include the progress the College and other investors are making in changing the behaviour, where change is needed, of companies in which it has invested. This should include a statement, including supporting evidence, on whether there is a clear prospect of future influence.

Should a corporation be deemed unresponsive to engagement by the Endowment and its asset managers, and that corporation is a strategic partner for the College, or a funder of research, or employer of graduates, then the College will use these relationships to influence and engage the corporation.

If the College assesses that a company’s current activities and future plans are not aligned with this policy and it has exhausted all possibilities for influence, it will instruct the Endowment Board to divest.

Council has mandated the Endowment Board to oversee its investment portfolio according to this policy.

Council has mandated President’s Board to provide it with advice on this policy and its delivery.

The College will ensure that:

1. The policy and practices relating to its investment portfolio are reviewed regularly
2. There is a forum for considering representations to change the Policy and practices relating to it on ESG grounds
3. Its investment managers are engaging in responsible investment, and report regularly to monitor the investment portfolio in the context of this Policy.

Review Programme

The SRI Policy Working Group met to review initial responses from the College community. Having reviewed these comments, the SRI Working Group have provided clarification on the language of the policy around fossil fuels. Details on this update can be found below.

An SRI Engagement Group was established to develop and implement methods to monitor and assess progress the College is making in influencing fossil fuel companies through its research and collaborations, education programmes and influence as a world-leading university. The SRI Engagement Group convened internal and external representation in order to draw on the expertise of the College community and ensure that the College’s assessment plan is benchmarked against best practices across the sector. The SRI Engagement Group Report (pdf) was published in November 2021. To ensure the successful implementation, ongoing delivery and evaluation of the SRI Engagement and Monitoring process, in order for the College to enact and monitor its Socially Responsible Investment Policy in relation to Fossil Fuel Companies (FFCs), the College has established an SRI Engagement Monitoring Panel.

Feedback on the SRI Policy can be sent to sri.policy@imperial.ac.uk

The College, including the Endowment will not invest (directly or indirectly) in companies that manufacture tobacco.

The College, including the Endowment will not invest (directly or indirectly) in companies which manufacture arms that are illegal under Arms Control Treaties to which the UK is a signatory.

The College will continue to invest in fossil fuels companies that demonstrate they are actively moving towards meeting Paris Agreement targets.

The College will influence the behaviour of these companies by the following means:

• Our educational programmes
• Our research and collaborations
• Our influence as active shareholders
• Our influence as a world-leading university

The Endowment Board will report on the progress the College and other investors are making in changing company behaviour, by measuring progress against the Paris Agreement targets.

The College believes that, on the current evidence, thermal coal and tar sand extraction do not play a part in achieving the Paris Agreement targets and will therefore instruct the Endowment Board to divest from direct and indirect investments in companies engaged in these activities that are unable to make progress towards Paris Agreement targets.

Current exposures to fossil fuels are monitored on a quarterly basis, and were 0% at 31 July 2024, aligning with the university's responsible investment objectives. 

Our College Strategy describes the Endowment as an enabler to strengthen and diversify our revenues so we can deliver our mission. We have spoken to individuals, staff groups and student representatives about how the Endowment funds are invested to achieve that goal while remaining true to the College mission ‘to achieve enduring excellence in research and education in science, engineering, medicine and business for the benefit of society’.

On Friday 22 November 2019, Council approved a recommendation from the Imperial College Student Union and the President’s Board to set up a SRI Policy Working Group. It was tasked with preparing a College SRI Policy for approval at the 14 February 2020 meeting of Council.

The SRI Policy Working Group have drawn on the expertise and views of the College community, key stakeholders, Endowment Board members and Council, as well as external experts in responsible investment. They have taken written evidence, invited specific people to give oral evidence and had informal discussions as appropriate.

The SRI Policy prepared by the SRI Working Group was discussed and approved at Council on Friday 14 February 2020. Council have now amended the Terms of Reference for the Endowment Board to instruct them to follow the College SRI Policy. The Endowment Board will report back to Council annually on its implementation of the SRI Policy.

• Friday 25 March 2022 - SRI Working Group Meeting to review the Working Group report. 
• Monday 11 April 2022 - SRI Policy progress Update at President's Board. 
• Friday 21 June 2024 - SRI Policy Working Group discuss implementation of SRI in Endowment, and the communication lines.
• Monday 2 December 2024 - SRI Policy implementation confirmed by UMB. 

3 December 2019 Meeting Summary

27 January 2020 Meeting Summary

6 February 2020 Meeting Summary

22 June 2020 Meeting Summary

30 October 2020 Meeting Summary

25 February 2021 Meeting Summary

24 May 2021 Meeting Summary

7 June 2021 Meeting Summary

29 September 2021 Meeting Summary.

25 March 2022 Meeting Summary.

The SRI Policy Working Group have drawn on the expertise and views of the College community, key stakeholders, Endowment Board members and Council, as well as external experts in responsible investment.

Evidence given in person

Submissions via email

 Key Dates 

Friday 22 November 2019 - Council approves the establishment of a SRI Policy Working Group

Thursday 28 November 2019- SRI Policy Working Group announced‌

Tuesday 3 December 2019 - First meeting of the SRI Policy Working Group- SRI Policy Working Group Meeting Summary - 3 December 2019‌

Tuesday 10 December 2019 - Discussion of Socially Responsible Investment at President’s Board

Monday 6 January 2020 
Meeting with:

• Annabel Rudebeck, Head of Non-US Credit at Western Asset Management and Member of the Endowment Board

Tuesday 7 January  2020- Second meeting of the SRI Policy Working Group

Monday 13 January 2020- Discussion of Socially Responsible Investment Policy at President’s Board

Monday 13 January 2020
Meeting with:

• Tom Pike, Vice-President of Imperial UCU
• Ann Muggeridge, Chair in Petroleum Engineering

Wednesday 15 January 2020
Meeting with:

• Bruce Duguid, Head of Stewardship at Hermes EOS
• Marisol Hernandez, Head of Asset Owners at UN Principles of Responsible Investment

Thursday 16 January  2020
Meeting with:

• Patrick Bolton, Professor of Finance and Economics
• Marcin Kacperczyk, Professor of Finance
• Alex Lipp, Divest Imperial

Friday 17 January  2020
Meeting with:

• Catherine Howarth, CEO of ShareAction
• Malia Schaerer, Investment Advisor, Marc Posso, Investment Advisor, and Norbert Rucker, Head of Economics and Next Generation Research, at Julius Baer
• Richard Maitland, Partner and Head of Charities, David Pitt-Watson, Advisor, and Ben McEwan, Climate Active Analyst, at Sarasin & Partners

Wednesday 22 January 2020- Third meeting of the SRI Policy Working Group

Friday 31 January 2020- Deadline for written submissions to be received

Tuesday 4 February 2020
Meeting with:

• Mary Ryan, Vice-Dean (Research), Faculty of Engineering

Wednesday 5 February 2020
Meeting with:

• Wendy Rees, Head of UK Stakeholder Relations and Reputation Management, and Andreas Borck, Investor Relations, at Shell

Thursday 6 February 2020
Meeting with:

• Alyssa Gilbert, Head of Policy and Translation, and Neil Jennings, Partnership Development Manager, at the Grantham Institute for Climate Change

Friday 14 February 2020- Council approved the Socially Responsible Investment Policy

Monday 2 March 2020- The Socially Responsible Investment Policy was published