Research-intensive universities call out the importance of sustainable investment and procurement in tackling climate change

What about investment?

Universities may be invested in securities such as stocks and bonds, in real estate, in natural resources, in private equity (e.g. venture capital for university spin-outs), etc. Some have endowments, some are invested via pension funds. Whilst the type and magnitude of their investments differ, most universities have opportunities to be active stakeholders. Not only can universities take action on their own investments, they can also play an important exemplary and influencing role by working with pension funds, investment managers and others to embed sustainability in their broader strategies. The statement offers seven recommendations around investment.

A separate document evidences trends and examples of good practice at LERU universities. Some actions focus on reducing the carbon footprint of equities in which universities invest, for instance by divesting from fossil fuel or by investing positively in low carbon sectors such as renewables or technology supporting sustainable development, or working with pension funds to invest sustainably. Other examples show how universities sign up to, engage with and report on principles for sustainable and responsible investment.

What about procurement?

Many LERU universities have, for years already, undertaken actions to make their procurement more sustainable, and they continue to refine and innovate their practice. Procurement covers the acquisition of goods, services or works via direct purchase, tendering, etc. In the statement, LERU universities argue it is advisable for all higher education institutions to assess the environmental and social impact of their procurement, including measuring the associated GHG emissions. As a second step, a strategy to include sustainability in procurement processes should be developed. Some important procurement areas for universities include construction or rental services for university buildings, travel and mobility, catering, electrical, electronic and laboratory equipment, energy consumption and generation, and more. The statement lists specific recommendations for these areas. Examples, given in a separate document, describe initiatives for reducing travel and for CO₂ compensation, for decreasing ruminant meat and increasing vegetarian and vegan meal options, for building carbon-neutral buildings, and for re-using and sharing equipment, to name just a few.

What’s next?

The LERU ad-hoc group which developed the statement will continue its work in 2022, tracking developments, sharing policy and practice from around the network, and assessing how LERU network processes can become more sustainable.

Says Prof. Kurt Deketelaere, Secretary-General of LERU:

“With the EU’s Green Deal strategy and the attention climate finance has received at the recent COP26, there are plenty of reasons and opportunities for universities to engage and for LERU to contribute to evidence-based policy making. For example, LERU is following closely the implementation of the EU Taxonomy Regulationand how it may affect universities via Horizon Europe or in other ways.”