Ethical Investment and Banking
Strong ethical investment and banking policies ensure an institution’s financial practices are conducted transparently and in an economically-viable and socially-responsible manner. Investments in the fossil fuel industry, the arms trade or companies involved in the operation of border infrastructure can be contradictory to an institution's broader aims and goals. This is why the People & Planet University League focuses not only on the transparency of university investments, but also the areas and sectors where university investments are held.
Over 70% of UK universities (109/153) have now taken action to reduce or remove their fossil fuel company investments. This means that those who have not yet divested are behind the curve. Investments in the fossil fuel industry uphold the injustices experienced by communities on the frontlines of fossil fuel extraction projects and the climate crisis. They are incompatible with institutional carbon reduction strategies and are financially precarious. Fossil Free is part of a global movement that has led to over $40 trillion worth of support being withdrawn from the fossil fuel industry. This is a culture shift that acknowledges the importance of cutting finance to fossil fuel projects and revoking the social licence that gives fossil fuel companies the ability to violate the rights of the frontline communities where they operate, dominate energy production and hinder the creation of effective climate policies.
Since 2022, the People & Planet University League has included a question (2c) on screening out border industry companies from investment portfolios. Migration is one of the defining human rights issues of the 21st century and governments are increasingly outsourcing the implementation of border control to the private sector. A vast number of border security and technology companies provide and develop the technologies and infrastructure to conduct border and immigration enforcement. It is widely documented how Western states’ militarised security responses to migration leads to the systematic denial of human rights, and death of refugees, asylum seekers, migrants, and racialised communities. Ethical investment experts increasingly highlight the legal and reputational risks of investing in the Border Industry. Through removing investments from border companies, UK universities can reflect their commitment to upholding fundamental human rights in their investment practices.
Universities will be assessed on all ethical investment policy questions even if they do not currently hold investment portfolios. 23 of the universities that have made commitments to never invest in fossil fuels are universities that do not currently hold any investments, and these ‘no investment’ universities can take the same approach to their position on border industry companies. These universities can - and do - pass and review ethical investment policies before investing becomes an option for them. It is much easier to pass and review investment policies pre-investment rather than wait until funds have been invested in, and then require a divestment process.
Signposts:
https://peopleandplanet.org/fossil-free/fossil-free-victories
https://peopleandplanet.org/fossil-free/fossil-free-declaration
https://peopleandplanet.org/divest-borders/victories
https://peopleandplanet.org/resources/divest-borders-declaration