Reducing our exposure to carbon-intensive companies

We reduce our exposure to carbon intensive companies, as measured by Weighted Average Carbon Intensity (WACI). This is an indicator of current climate-related risks facilitating comparison across asset classes and across industry sectors, in the endowment’s equities allocation.

We aim to achieve a carbon intensity of less than 85 (t of CO₂e) per million pounds of revenue by 2025.

Performance against targets

After thorough consultation with students and staff, led by Royal Holloway’s Students’ Union and supported by members of the University’s Environmental Sustainability Working Group, and careful consideration from the University's Investment Sub Committee, in 2023 the University’s Statement of Investment Policy was updated in recognition of our commitment to environmental sustainability, social justice and addressing the climate emergency within our endowment investments. This included the decision to divest from fossil fuel investments.

Reducing Scope 3 emissions

In 2024 we introduced a new target to reduce Scope 3 emissions. Companies themselves do not produce scope 3 emissions but represent their indirect emissions, such as business travel or supply chain emissions. Reporting scope 3 provides a fuller picture of the impact of the companies invested in. The estimated Scope 3 weighted average carbon intensity on 31 July 2024 is 624.17.

Our target has been derived by taking the top end of the EU Technical Expert Group on Sustainable Finance recommendation that a reduction in the WACI of 5-7% per year is needed for portfolios to align with the goals of the Paris Agreement. 2030 has been selected as it aligns with the Paris Agreement’s interim goal and it gives Royal Holloway time to adapt this target should the data quality change materially.