سياسة سحب الاستثمارات

Contents

1. Purpose of the Policy

2. Policy Principles and Commitments

3. Exclusions and Screening Standards

4. Implementation and Governance

5. Monitoring, disclosure and KPIs

6. Review, update and effective date

7. Definitions

1. Purpose of the Policy

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 Vision 2030, the Ministry of Energy’s National Renewable Energy Program, and Saudi Energy Efficiency Centre initiatives.

1.2. This policy applies to all university investment accounts managed by or on behalf of Qassim University, including externally managed mandates.

2. Policy Principles and Commitments

2.1. Investment decisions shall support the Kingdom’s shift to a diversified, efficient and lower‑emissions energy mix under Vision 2030 and Ministry of Energy and Saudi Energy Efficiency Centre programs.

2.2. Effective on 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.

2.3. Existing holdings in the sectors listed above will be wound down through an orderly, time‑bound process, prioritising risk‑managed exit and value preservation.

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.

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.

2.6. All mandates with external managers will include explicit exclusions, engagement expectations, reporting requirements and termination rights for non‑compliance.

3. Exclusions and Screening Standards

3.1. Absolute exclusions:

• thermal coal mining;
• coal‑fired power generation;
• companies whose primary business activity is upstream oil exploration and production;
• new private or public issuances by such entities.

3.2. Negative screening:

• mid‑ and downstream oil and gas activities with material expansion Capital Expenditure (CapEx) inconsistent with a credible transition pathway;
• entities with persistent environmental non‑compliance or governance failures.

3.3. Pre‑investment screening should assess business mix, CapEx plans, transition strategy, and environmental compliance. Positions will be reviewed at least annually.

4. Implementation and Governance

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.

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.

4.3. General Administration of Internal Audit supports control design and testing for mandate compliance, data integrity and lifecycle documentation.

4.4. Contracts and Procurement Management ensures policy clauses are embedded in the manager onboarding.

5. Monitoring, disclosure and KPIs

5.1 To track performance and demonstrate progress, the University will report annually on:

• Exposure to excluded sectors—market value and percentage.
• Reinvestment share in clean‑energy, efficiency and other sustainable assets—market value and percentage.
• Compliance rate of external managers with exclusions, engagement milestones and data‑reporting obligations.
• Material escalation actions taken—engagement outcomes, reductions, terminations.

6. Review, update and effective date

6.1. The Centre 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.

6.2. Summary disclosures will be published in the University’s sustainability reporting channels.

7. Definitions

1. Divestment: The orderly sale or redemption of holdings in targeted sectors or issuers, including termination of non‑compliant mandates.
2. Carbon‑intensive energy industries: Thermal coal mining and coal‑fired power generation, and entities whose primary business is upstream oil exploration and production.
3. 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.