7.2.6

Fossil Fuel Divestment and Ethical Investment Policy

Preamble

The University of Thessaly (UTh) recognizes its responsibility to ensure that its financial and investment activities reflect its commitment to climate action, sustainability, and social responsibility. As a center of knowledge, innovation, and ethical leadership, the University has a duty to align its financial practices with its academic values and societal responsibilities.

This policy establishes the University’s framework for divesting from carbon-intensive industries, notably coal, oil, and other fossil fuels, and redirecting funds toward sustainable, low-carbon, and socially responsible investments. By doing so, UTh seeks to lead by example, supporting the transition toward a sustainable global energy system and advancing the United Nations Sustainable Development Goals, particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).

Purpose

The purpose of this policy is to ensure that the University of Thessaly’s financial and investment practices reflect its commitment to climate action, sustainability, and social responsibility. Specifically, the policy aims to:

Ensure alignment of the University’s financial practices with its climate and sustainability commitments;
Phase out investments in companies primarily involved in coal, oil, or other fossil fuel extraction and production;
Redirect investments toward renewable energy, clean technologies, and social impact sectors;
Strengthen the University’s leadership in ethical and responsible investment within higher education;
Contribute to the achievement of the United Nations Sustainable Development Goals, particularly SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action).

Legal and Strategic Framework

This policy is guided by the following national and international frameworks, principles, and commitments:

Law 4957/2022;
Regulation (EU) 2020/852 (EU Taxonomy for Sustainable Activities);
Regulation (EU) 2019/2088 (Sustainable Finance Disclosure Regulation – SFDR);
Regulation (EU) 2021/1119 (European Climate Law);
Paris Agreement (2015);
UN Principles for Responsible Investment (UN PRI);
University of Thessaly Sustainability Strategy 2030.

Scope

This policy applies to all funds and financial assets managed directly or indirectly by UTh, including but not limited to:

All financial investments, endowment funds, and reserves managed by or on behalf of the University;
Collaborations and partnerships involving long-term financial or infrastructure commitments;
Research, scholarship, and donor-advised funds under university management;
Subsidiary foundations or trusts associated with the university financial operations.

Policy Statement

UTh acknowledges the significant contribution of fossil fuel combustion to global climate change and recognizes its responsibility to act in alignment with scientific, ethical, and social imperatives for sustainability.

The University therefore commits to:

Fully divest from all direct and indirect investments in companies whose core business involves: Coal mining or coal-based energy production, Oil extraction and refining, Natural gas extraction, Tar sands, shale oil, or other non-conventional fossil fuels. Divestment shall be completed within five years from policy adoption, with annual progress reviews.
Exclude investments from companies deriving more than 10% of revenue from fossil fuel production or infrastructure; Financial institutions that finance or underwrite coal and oil expansion projects; Suppliers of equipment or services primarily used in fossil fuel extraction.
Redirect funds, released through divestment, toward sustainable alternatives, such as: Renewable energy generation and storage; Energy efficiency technologies; Sustainable transport infrastructure; Green bonds and ESG-certified financial instruments; Local or regional projects aligned with the EU Green Deal.

Governance

A dedicated steering committee (SC) shall oversee the implementation of this policy. The Committee shall include the Vice-Rector of innovation, Internationalization, Collaborations and Digital Governance as well as representatives from:

University Finance Department;
Department of Environmental Sciences;
Faculty experts in environmental and financial disciplines;
Law experts.

The committee will oversee the implementation of this policy, approve divestment schedules, and ensure ongoing compliance.

The committee shall report annually to the University Council on divestment progress, ethical investment performance, and future recommendations.

An external Advisory Board may be established to provide independent expertise and guidance on ethical and sustainable investment practices. Responsibilities include:

Advising the SC on market trends and risk management;
Reviewing the University’s investment strategy for alignment with global sustainability best practices;
Offering guidance on advocacy and stakeholder engagement initiatives;
Supporting transparency and credibility of reporting to the University Council, donors, and the public.

Advocacy

UTh recognizes that its responsibility extends beyond managing its own investments. As a leader in higher education, UTh will actively advocate for sustainable finance, renewable energy, and ethical investment practices, contributing to broader societal and global efforts to combat climate change and advance sustainability.

Purpose of Advocacy

Promote awareness and adoption of climate action and sustainable finance principles within the academic sector and the wider community;
Reinforce the University’s leadership role in ethical investment and responsible institutional governance.

Stakeholder Engagement

Collaborate with national and international networks, including higher education consortia, UN PRI initiatives, and sustainability-focused organizations;
Engage with students, faculty, staff, and alumni to raise awareness and encourage active participation in sustainability initiatives;
Partner with local communities and government agencies to support policies, projects, and research that advance renewable energy and climate action.

Public Positioning

Make public statements endorsing divestment, ethical investment, and clean energy transitions;
Advocate for policy changes at local, national, or international levels that promote sustainability and climate responsibility;
Participate in conferences, seminars, and collaborative research initiatives related to sustainable finance, renewable energy, and climate policy.

Internal Advocacy

Integrate advocacy into university curricula, research agendas, and outreach programs;
Encourage faculty and student research on climate solutions, renewable energy, and sustainable investment;
Provide training, workshops, or seminars for staff and decision-makers on ethical investment practices;
Participate in conferences, seminars, and collaborative research initiatives related to sustainable finance, renewable energy, and climate policy.

Transparency and Reporting

The University will publish an Annual Sustainable Investment Report outlining divestment progress, investment portfolio composition, and the outcomes of this policy, including:

Current investment portfolio composition;
Percentage of funds divested from fossil fuels;
Allocation of reinvested sustainable assets;
Verification of compliance with the EU Sustainable Finance

The report will be made publicly available via the University’s website.

Review and Continuous Improvement

This policy shall be reviewed at least every three (3) years, or sooner if significant changes occur in the EU and/or national legislations, market conditions, or University strategy.

Stakeholder feedback, including from students, staff, faculty, and the broader community, will inform revisions.