At a glance
- University of Cambridge Investment Management, which oversees the university's £5.5 billion endowment, is encouraging other asset owners to adopt the framework, Hedgeweek reported, citing Responsible Investor.
- The principles set expectations in four areas: climate expectations, targeted engagement, strategy-specific approaches and improved emissions disclosure.
- UCIM can terminate a relationship where progress is insufficient, making climate engagement part of redemption and re-up conversations rather than a one-time subscription document.
The University of Cambridge's investment arm has published sustainability principles for its hedge fund managers. University of Cambridge Investment Management, which oversees the university's £5.5 billion endowment, is encouraging other asset owners to adopt the framework, Hedgeweek reported, citing Responsible Investor.
The principles set expectations in four areas: climate expectations, targeted engagement, strategy-specific approaches and improved emissions disclosure. Managers judged able to exert greater influence are expected to accept stronger commitments, including fossil fuel restrictions and structured engagement programmes. For other strategies, the emphasis is on limiting new funding for fossil fuel activity and improving transparency. Absolute-return and credit strategies account for more than a fifth of the endowment.
UCIM can terminate a relationship where progress is insufficient, making climate engagement part of redemption and re-up conversations rather than a one-time subscription document. UCIM said managers had responded positively, though some asked for further clarification before signing.
The framework sits alongside portfolio-level targets: net-zero greenhouse gas emissions across the portfolio by 2038, and elimination of meaningful fossil fuel exposure by 2030.
Reported by the Manager Selection desk from Hedgeweek, citing Responsible Investor. Published . Corrections