Divestment Policy


The University of Newcastle manages responsible investment and divestment through its Investment Policy and Environmental Sustainability Policy. Together, these policies integrate environmental, social and governance (ESG) considerations into investment decisions and support the transition to a low-carbon economy.

The current Investment Policy took effect on 26 August 2025 and applies to the investments of the University and its controlled entities. It requires ESG considerations to be incorporated into investment management and oversight.

Responsible investment and climate considerations

  • The University integrates ESG considerations, including climate change, into the management of its investment portfolio.
  • Investment Portfolio Managers and External Investment Managers are required to incorporate ESG factors into their investment processes.
  • The University measures and monitors the carbon footprint of its listed equity investments, with the aim of keeping that footprint below relevant market indices and investing consistently with its broader sustainability commitments and the Paris Agreement.

Under the Investment Policy, the Investment Portfolio Manager must report on the ESG capabilities and performance of investment managers and co-mingled investment vehicles.

  • This includes benchmarking investment managers to encourage improvement in ESG performance over time.
  • It also includes measuring and monitoring the carbon footprint of listed equity investments and tracking performance against relevant market indices.

The policy also supports active stewardship of investments, including engagement on climate change, support for a transition to a low-carbon economy, and investment in sustainable industries and businesses where these align with the University's risk appetite and long-term investment objectives.

Divestment and the transition to a low-carbon economy

The Environmental Sustainability Policy in force during 2025 stated that, in implementing the Investment Policy, the University would explore portfolio investments aligned with the UN Sustainable Development Goals and
"use divestment, where possible, as a means of transitioning to a low carbon economy."

Read the Environmental Sustainability Policy.

Reducing exposure to fossil fuels

The University's investment and procurement sustainability goals states that the University no longer directly invests in fossil fuel companies and has integrated ESG ratings across its investments. It also records that international investments were transferred to Mercer Global Socially Responsible share funds.

These policies and investment practices combine divestment, carbon-footprint monitoring, ESG integration and active stewardship to reduce climate-related investment exposure and support a lower-carbon investment portfolio.