Purpose

Prince Sultan University (“PSU”) is the first private-not-for-profit university established to provide distinguished academic and research programs in KSA. The main purpose of this policy is to outline the PSU’s commitment to ensure the funds are invested responsibly. The policy is based on international best practices and the recommendations of PSU boards, stakeholders’ and accreditation agencies. This policy also ensures that PSU optimizes its investment returns without compromising our commitment to UN Sustainable Development Goals (SDGs).

Policy

• The Sustainable Investment Policy (“SIP”) documents the way in which PSU Investment team currently embeds the best of sustainable investment research, risk management and idea generation.
• The Sustainable Investment Policy (“SIP”) intends to promote active sustainable investment in companies and investment funds which demonstrate policies and practices that are in line with the University’s values.
• Sustainable investment (“SI”) is crucial to ensure a successful long term investment outcome and to guarantee better returns and lower risks. It describes long term, finance-driven strategies, which involves, environmental, social and corporate governance (“ESG”) elements, effective stewardship and real-world effect in investments deals.
• SI considerations can materially improve risk and/or return for our portfolios. In addition, this topic is subject to significant regulatory and public scrutiny, as well as material reputational risk.
• PSU embraces its unique role in contributing to the United Nations Sustainable Development Goals (“SDGs”). The Vice- President for Administrative and Financial Affairs Office oversees the investment funds of the University work to agreed investment criteria based on environmental, social and governance (“ESG”) standards.
• PSU applies a combination of negative and positive screens to ensure that companies that may be harmful to society or the environment are excluded and to invest in businesses with responsible culture, practices, and good governance.
• PSU does not have investments in extractive fossil fuels in its current portfolio and this is reviewed annually and reported on. In this way PSU is compliant with the principles of ESG, contributing to a UN Sustainable Development Goals.

Implementation

Management

• The university and the Compliance and Legal Office (“CLO”)are responsible for ensuring that all the University Community are complying with the Sustainable Investment Policy. The management is also responsible for making all external parties aware of any changes to the Sustainable Investment Policy
• In order to monitor the implementation and ongoing adherence to this Policy PSU will publish this Sustainable Investment Policy on its website and it is also communicated to the wider University population by the (“PDU”) and (CLO”).
• Institutional Financial and Risk Management Committee hold regular meetings to monitor adherence with the Policy.
• This Sustainable Investment Policy will be reviewed annually by the Institutional Financial and Risk Management Committee and Center for Sustainability and Climate and then reported to the Policies & Development Unit (“PDU” ) to be reviewed and approved, then submitted to the University Council for final approval