Introduction: Universitas Ahmad Dahlan (UAD) is committed to fostering a sustainable future for our students, faculty, staff, and the communities we serve. As an institution of higher education, we recognize the importance of incorporating environmental, social, and governance (ESG) factors into our investment practices. This sustainable investment policy outlines UAD’s commitment to responsible investing and the integration of ESG considerations in our investment decisions.

Objectives: The primary objectives of UAD’s sustainable investment policy are as follows:

1. Sustainability Integration: To integrate environmental, social, and governance factors into our investment decision-making process, ensuring that our investment practices align with our commitment to sustainability.
2. Long-term Value Creation: To seek sustainable financial returns while considering the long-term impact of our investments on society, the environment, and future generations.
3. Responsible Stewardship: To be responsible stewards of our endowment and other invested assets, promoting responsible corporate behavior and engaging with companies to encourage sustainability best practices.

Guiding Principles: UAD will adhere to the following guiding principles in implementing our sustainable investment policy:

1. ESG Integration: We will integrate ESG factors into our investment analysis and decision-making process, recognizing that these factors can have a material impact on the long-term performance of our investments.
2. Transparency: We will maintain transparency in our investment practices and regularly report on the progress and performance of our sustainable investment portfolio.
3. Diversity and Inclusion: We will consider investments that promote diversity and inclusion, both within our investment portfolio and in the companies we support.
4. Engagement: We will actively engage with companies in which we invest to encourage sustainable business practices, promote transparency, and advocate for positive change.
5. Exclusionary Criteria: We will avoid investments in companies involved in activities that are harmful to the environment, human rights, and society, such as tobacco, weapons manufacturing, and other industries inconsistent with our sustainability values.

Investment Process: To achieve our sustainable investment objectives, UAD will follow a structured investment process that includes the following steps:

1. ESG Analysis: We will conduct thorough ESG analysis on potential investment opportunities, examining the environmental, social, and governance practices of companies and funds.
2. Integration and Screening: Based on the ESG analysis, we will integrate sustainability considerations into our investment decision-making process. Investments that meet our sustainability criteria will be considered for inclusion in our portfolio.
3. Active Ownership and Engagement: UAD will actively engage with companies in our portfolio to promote responsible corporate behavior and advocate for sustainable business practices.
4. Performance Evaluation: We will regularly evaluate the performance of our sustainable investment portfolio, assessing both financial returns and ESG outcomes.

Reporting and Review: UAD will provide regular updates and reports on the progress of our sustainable investment initiatives to key stakeholders, including the board of trustees, faculty, staff, students, and the wider community. We will also conduct periodic reviews of our sustainable investment policy to ensure its effectiveness and relevance in light of changing circumstances and emerging sustainability challenges.

Conclusion: By adopting this sustainable investment policy, Universitas Ahmad Dahlan reaffirms its commitment to sustainability, responsible investing, and making a positive impact on society and the environment. We believe that integrating ESG factors into our investment practices will contribute to a more sustainable future while supporting the financial well-being of our institution.