The School has investments of donations and endowments as well as funds held for capital projects and strategic investment. Ethical, social, environmental and governance factors are a key aspect of our investment decisions in managing these funds.
Actions and progress
- LSE is a signatory of the United Nations Principles for Responsible Investment, which commits us to six guiding principles of responsible investment.
- Our Socially Responsible Investment Policy and Ethics Code guide the School's investment practices on environmental and social sustainability.
- We are committed to actively avoid investment exposure to tobacco manufacture, indiscriminate arms manufacture or companies which are significantly engaged in the extraction of thermal coal and tar sands, the most polluting of fossil fuels. LSE has no direct investment in those areas.
- LSE’s investments are in externally managed funds. We actively engage with those fund managers to reduce indirect investments exposure in the areas we aim to avoid.
- The School also actively engages directly with each of its investment fund managers to assess and drive performance on Environmental, Social and Governance (ESG) matters.
- Since the introduction of our Socially Responsible Investment Policy in 2015-16, the exposure of our investments in the areas we aim to minimise has reduced by over 80 per cent from 3.4 per cent of total assets to 0.6 per cent in 2018-19.
- We are committed to strengthening our approach to responsible investment and continue to review our policies and consider further steps and actions we can take.