The Ethical Investment Policy commits King’s to making no direct investments in tobacco, divesting from all fossil fuel investments and investing 40 per cent of its funds in investments with socially responsible benefits by 2025.
In 2021, King’s fully divested from fossil fuels almost two years ahead of target and since 2023, armaments are also excluded from investments. King’s conducts ethical screening for cash deposits, which excludes companies that generate over 10% of their turnover from armament, tobacco and/or fossil fuels.
In 2022–23, we also met our commitment to invest 40 per cent of funds in investments with a positive purpose two years early and King’s only purchases green bonds to raise debt. We have invested £44 million in the Northern Trust’s World Green Transition Index Fund, which not only screens out fossil fuel producers and the worst 10 per cent of companies by carbon emissions intensity but also has a positive ‘tilt’ towards companies that generate ‘green’ revenue, such as energy efficiency and alternative energy. We also have £14 million invested in RobecoSAM’s Sustainable Water Strategy, which invests in companies with innovative technologies and products across the water value chain that will help deal with the issue of water scarcity. During the year, £10 million was invested in the Polar Capital Smart Energy Fund, which invests in companies involved with clean power distribution, energy transmission and distribution, energy conversion and storage, and energy efficiency. £8 million was also invested in the GMO Climate Change Select Investment Fund, which invests in companies dealing with clean energy, batteries and storage, electric grid and energy efficiency.
The Ethical Investment Policy is due to be reviewed in 2023–24, which will provide an opportunity to work with the Finance Team to set new targets and further embed responsible investment principles in our policy.
