{"id":52757,"date":"2025-11-09T13:35:18","date_gmt":"2025-11-09T10:35:18","guid":{"rendered":"https:\/\/www.qu.edu.sa\/?post_type=policies&#038;p=52757"},"modified":"2025-11-09T13:36:39","modified_gmt":"2025-11-09T10:36:39","slug":"divestment-policy","status":"publish","type":"policies","link":"https:\/\/www.qu.edu.sa\/en\/policies\/divestment-policy\/","title":{"rendered":"Divestment policy"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"52757\" class=\"elementor elementor-52757\" data-elementor-post-type=\"policies\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c89618a ltr-container e-flex e-con-boxed e-con e-parent\" data-id=\"c89618a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-acf883c ltr-container elementor-widget elementor-widget-text-editor\" data-id=\"acf883c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<table cellspacing=\"0\" cellpadding=\"0\"><tbody><tr><td valign=\"top\"><p><b>Policy name<\/b><b><\/b><\/p><\/td><td valign=\"top\"><p>Created<\/p><\/td><td valign=\"top\"><p>Implemented<\/p><\/td><td valign=\"top\"><p>Reviewed<\/p><\/td><\/tr><tr><td valign=\"top\"><p>Divestment from carbon-intensive energy<\/p><\/td><td valign=\"top\"><p>2020<\/p><\/td><td valign=\"top\"><p>2021<\/p><\/td><td valign=\"top\"><p>October 14, 2025<\/p><\/td><\/tr><\/tbody><\/table><p>&nbsp;<\/p><p><b>Contents<\/b><b><\/b><\/p><p>1. Purpose of the Policy<\/p><p>2. Policy Principles and Commitments<\/p><p>3. Exclusions and Screening Standards<\/p><p>4. Implementation and Governance<\/p><p>5. Monitoring, disclosure and KPIs<\/p><p>6. Review, update and effective date<\/p><p>7. Definitions<\/p><p>&nbsp;<\/p><p><b><\/b><b>1. Purpose of the Policy<\/b><\/p><p>1.1. Qassim University (QU) will align its treasury and investment practices with national energy transition objectives by divesting from carbon-intensive energy industries, notably coal and oil, and reallocating capital towards clean energy, energy efficiency, and other sustainable assets consistent with <a href=\"https:\/\/www.vision2030.gov.sa\/media\/rc0b5oy1\/saudi_vision203.pdf\" target=\"_blank\" rel=\"noopener\">Vision 2030<\/a>, the Ministry of Energy's <a href=\"https:\/\/www.moenergy.gov.sa\/en\/eco-system\/programs\/renewable-energy\" target=\"_blank\" rel=\"noopener\">National Renewable Energy Program<\/a>, and <a href=\"https:\/\/www.moenergy.gov.sa\/en\/eco-system\/programs\/\" target=\"_blank\" rel=\"noopener\">Saudi Energy Efficiency Center initiatives<\/a>.<\/p><p>1.2. This policy applies to all university investment accounts managed by or on behalf of Qassim University, including externally managed mandates.<\/p><p><b>2. Policy Principles and Commitments<\/b><\/p><p>Investment decisions shall support the Kingdom\u2019s shift to a diversified, efficient, and lower-emissions energy mix under Vision 2030 and Ministry of Energy and Saudi Energy Efficiency Center programs.<\/p><p>Effective upon adoption, the University will make no new direct or indirect investments in thermal coal mining, coal-fired power generation, or entities whose primary business is upstream oil exploration and production.<\/p><p>2.3. Existing holdings in the sectors listed above will be wound down through an orderly, time-bound process, prioritizing risk-managed exit and value preservation.<\/p><p>2.4. For diversified energy companies, the University will first pursue constructive engagement. Where engagement fails or progress is insufficient, positions will be reduced and ultimately exited.<\/p><p>2.5. Proceeds from divestment will be preferentially reallocated to Saudi clean energy and efficiency opportunities, and to high-quality sustainability-linked instruments aligned with national policies.<\/p><p>2.6. All mandates with external managers will include explicit exclusions, engagement expectations, reporting requirements, and termination rights for non-compliance.<\/p><p><b>3. Exclusions and Screening Standards<\/b><\/p><p>3.1. Absolute exclusions:<\/p><ul><li>thermal coal mining;<\/li><li>coal-fired power generation;<\/li><li>Companies whose primary business activity is upstream oil exploration and production;<\/li><li>new private or public issuances by such entities.<\/li><\/ul><p>3.2. Negative screening:<\/p><ul><li>mid and downstream oil and gas activities with material expansion Capital Expenditure (CapEx) inconsistent with a credible transition pathway;<\/li><li>entities with persistent environmental non-compliance or governance failures.<\/li><\/ul><p>3.3. Pre-investment screening should assess business mix, CapEx plans, transition strategy, and environmental compliance. Positions will be reviewed at least annually.<\/p><p><b>4. Implementation and Governance<\/b><\/p><p>4.1. The General Administration of Financial Affairs and the General Administration of Investment and Endowment implement this policy in all mandates, mandate exclusions with managers, and execute divestment and reinvestment actions.<\/p><p>4.2. The Centre for Sustainable Development provides institutional oversight, coordinating policy application, advising on transition alignment, consolidating disclosures, and ensuring performance follow-up and evaluation are embedded in investment processes.<\/p><p>4.3. General Administration of Internal Audit supports control design and testing for mandate compliance, data integrity and lifecycle documentation.<\/p><p>4.4. Contracts and Procurement Management ensures policy clauses are embedded in the manager onboarding.<\/p><p><b>5. Monitoring, disclosure and KPIs<\/b><\/p><p>5.1 To track performance and demonstrate progress, the University will report annually on:<\/p><ul><li>Exposure to excluded sectors\u2014market value and percentage.<\/li><li>Reinvestment share in clean energy, efficiency, and other sustainable assets\u2014market value and percentage.<\/li><li>Compliance rate of external managers with exclusions, engagement milestones, and data-reporting obligations.<\/li><li>Material escalation actions taken\u2014engagement outcomes, reductions, terminations.<\/li><\/ul><p><b>6. Review, update and effective date<\/b><\/p><p>6.1. The Center for Sustainable Development will coordinate an annual implementation review (data, compliance, outcomes) and propose updates as needed. A comprehensive policy review will be conducted every two years or upon material changes in national energy policy or market standards.<\/p><p>Summary disclosures will be published in the University's sustainability reporting channels.<\/p><p><b>7. Definitions<\/b><\/p><ol><li>Divestment: The orderly sale or redemption of holdings in targeted sectors or issuers, including termination of non-compliant mandates.<\/li><li>Carbon-intensive energy industries: thermal coal mining and coal-fired power generation, and entities whose primary business is upstream oil exploration and production.<\/li><li>Reinvestment in sustainable assets: Allocation to renewable energy, energy efficiency, and other assets that demonstrably support national energy transition objectives and prudent risk-adjusted returns.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Policy name Created Implemented Reviewed Divestment from &#1089;arbon&#8209;intensive energy 2020 2021 14 October 2025 &nbsp;Contents1. Purpose of the Policy2. Policy Principles and Commitments3. Exclusions and Screening Standards4. Implementation and Governance5. Monitoring, disclosure and KPIs6. Review, update and effective date7. Definitions&nbsp;1. Purpose of the Policy1.1. Qassim University (QU) will align its treasury and investment practices with [&hellip;]<\/p>\n","protected":false},"author":6,"parent":0,"menu_order":0,"template":"","sdgs":[107],"departments-list":[],"class_list":["post-52757","policies","type-policies","status-publish","hentry","sdgs-sdg7"],"_links":{"self":[{"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/policies\/52757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/policies"}],"about":[{"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/types\/policies"}],"author":[{"embeddable":true,"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":4,"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/policies\/52757\/revisions"}],"predecessor-version":[{"id":52763,"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/policies\/52757\/revisions\/52763"}],"wp:attachment":[{"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/media?parent=52757"}],"wp:term":[{"taxonomy":"sdgs","embeddable":true,"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/sdgs?post=52757"},{"taxonomy":"departments-list","embeddable":true,"href":"https:\/\/www.qu.edu.sa\/en\/wp-json\/wp\/v2\/departments-list?post=52757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}