Carbon footprint considerations in investment portfolios : a comparative study of top and bottom “Universities Leading Climate Change Mitigation”, based on 2024 ranking

Abstract

Universities’ investment portfolios have the potential to lead climate change mitigation initiatives through more sustainable finance management strategies. This thesis provides a comparative analysis of the investment strategies of the top ten and a selection of five lower segment universities of the "Universities Leading Climate Change Mitigation" 2024 ranking published by Times Higher Education. The assessment is based on four key criteria, divestment strategy, alignment with the principles of responsible investment (UNPRI), transparency and carbon handprint consideration. The results of the study show that universities leading in the ranking on climate action are likely to adopt an integrated approach combining divestment and integration of ESG factors into their investment strategies. At the same time, universities in low positions either do not have sustainable investment strategies or are limited to formal measures and often are not transparent at all about their financial information. This study also indicates the need to revise the methods of universities’ sustainability rankings, offering a multi-level system for assessing the sustainability of investment practices. The results can be used both by universities trying to reconsider their investment policies and by agencies forming new methodologies in the field of sustainable development.