Divestment Policy

Divestment Policy [7.2.6]

Institutional policy outlining divestment from carbon-intensive sectors and reinvestment in sustainable, low-emission industries.

Introduction

A Divestment Policy reflects the university’s institutional commitment to aligning financial decisions with sustainability goals by gradually reducing reliance on fossil fuel-based assets, partnerships, and high-carbon procurement. This axis contributes to SDG 7 by prioritizing clean energy investment pathways and encouraging ethical economic governance. In the university context, divestment does not always refer strictly to financial market portfolios; it may also refer to procurement guidelines, energy purchasing frameworks, and vendor selection processes. Universities can shift procurement criteria to favor renewable energy systems, electric equipment, and hybrid campus transportation fleets. Awareness campaigns, green procurement committees, and sustainability audits accompany these efforts to ensure transparency, accountability, and a measurable reduction in carbon dependency. Divestment policies also reinforce SDG 13 (Climate Action) by operationalizing long-term emission reduction strategies. Moreover, such policies shape institutional culture by signaling that sustainability is a core value guiding academic planning, infrastructure decisions, and community partnerships. Through education, policy reform, and resource reallocation, divestment becomes a tool to encourage systemic transformation in energy practices across campus services, research funding, and public engagement.