Newcastle University has announced it aims to divest from fossil fuel companies within five years.
The institution is modifying its investment strategy which will give preference to investors who invest in companies that are working towards low carbon solutions.
As a consequence, the new plan will get rid of thermal coal and oil sands companies and other non-progressive oil and gas firms by 2021.
The decision follows calls from the university’s Students Union to embed environmental, social and governance (ESG) considerations into its investment strategy.
Mark l’Anson, Chair of Newcastle University’s Council said: “Newcastle University is committed to furthering environmental sustainability and we have a strong track-record in this regard.
“We took the concerns raised by our student body very seriously and I am grateful to the Carbon Advisory Group for its considered approach to this complex issue. It is hoped that today’s decision will allow the university to address ESG considerations across the university’s investment portfolio and reduce the university’s exposure to investments linked to explicit environmental damage.”
Earlier this month, the university announced it will open a new energy centre worth £20 million.