Sustainable Investing Policy

Al-Quds University’s Sustainable Investment Policy outlines our commitment to responsible investing, integrating environmental, social, and governance (ESG) considerations into all investment decisions. This policy aims to ensure our financial activities align with global sustainability goals, ethical standards, and our institutional values.

Scope

This policy applies to all investment decisions, including university-managed endowments, funds, and financial holdings managed directly or through third-party managers.

Investment Principles

All investment activities at Al-Quds University adhere to the following core ESG principles:

• Environmental Responsibility: Prioritizing investments in enterprises and funds demonstrating clear environmental benefits, climate risk mitigation, renewable energy, and reduced carbon footprints.

• Social Impact: Favoring investments that uphold high labor standards, community engagement, health, education, diversity, equity, and inclusion.

• Governance Excellence: Investing in entities demonstrating transparent governance structures, ethical leadership, accountability, and anti-corruption practices.

Exclusion Criteria

The University explicitly excludes investments in entities involved in:

• Fossil fuel extraction or coal mining

• Manufacture and distribution of tobacco products

• Production or trading of weapons and armaments

• Activities violating human rights and international labor standards

Positive Screening and ESG Integration

• Al-Quds University proactively seeks investments demonstrating superior ESG performance, sustainability certifications, and alignment with the UN Sustainable Development Goals (SDGs).

• Investment managers and financial advisors are required to evaluate ESG risks and opportunities explicitly during investment appraisal processes.

• Regular ESG performance reporting from fund managers is mandatory.

Active Ownership and Engagement

• Al-Quds University commits to actively engaging with portfolio companies and funds, advocating improved sustainability practices, transparency, and enhanced ESG disclosure.

• Voting rights will be exercised consistently to support sustainability-related shareholder resolutions.

Transparency and Reporting

• Annual sustainability investment reports outlining ESG investment performance, divestment actions, and portfolio alignment with sustainability objectives will be publicly disclosed.

• Clear performance metrics, targets, and ESG criteria will be reported annually.

Roles and Responsibilities

• University Investment Committee: Approves and oversees the implementation and effectiveness of this policy.

• Financial Investment Office: Responsible for day-to-day integration of ESG criteria, selection of investment managers, and ensuring compliance.

• Investment Managers and Advisors: Required to adhere to this policy, report regularly on ESG compliance, and actively manage investments according to university ESG guidelines.

Policy Implementation and Monitoring

• ESG investment criteria and exclusions will be integrated explicitly into contracts with investment managers.

• Regular audits and reviews will monitor adherence and ESG performance.

Continuous Improvement

• Al-Quds University will continuously review and update this policy every two years, benchmarking against international standards, such as Principles for Responsible Investment (PRI), UN SDGs, and relevant ESG frameworks.

Alignment with International Standards

This policy aligns with globally recognized frameworks including:

• United Nations Principles for Responsible Investment (UN PRI)

• Sustainable Development Goals (SDGs)

• Global Reporting Initiative (GRI)

Policy Review

The Sustainable Investment Policy will undergo formal review every two years to maintain alignment with global ESG standards, financial best practices, and institutional sustainability objectives.

Governance and Oversight

Investment activities are overseen by the University’s financial and governance bodies, in coordination with sustainability leadership structures, ensuring transparency and accountability.

Monitoring and Alignment

The University continuously reviews its investment portfolio to improve sustainability performance and align with its Climate Action Plan and net-zero commitment by 2050.

This policy supports SDG 13 (Climate Action) and SDG 12 (Responsible Consumption and Production), reinforcing the University’s commitment to ethical and sustainable financial management.