Discussed and approved at the meeting
№ES08-04/24 of Scientific Council
at Baku Eurasian University
on 26.04.2024.
Policy on Divesting from Carbon-Intensive Energy Industries
Policy Statement
Through prudent investing practices, Baku Eurasian University (BAAU) is dedicated to combating climate change and advancing sustainability. Diversifying from carbon-intensive energy sectors, especially coal and oil, is one way the institution acknowledges the significance of coordinating its financial operations with its environmental principles.
Scope
Faculty, staff, and students are frequently actively involved in promoting divestment policies, even though they are not directly in charge of making investment decisions. The rules can also apply to outside managers that the university hires. When these managers make investment choices on behalf of Baku Eurasian University, the university may demand adherence to divestment objectives. It is intended to promote responsibility throughout the university by involving all pertinent stakeholders in its financial ecosystem.
Objective: The main goal of BAAU's divestment policy is to cut off funding for businesses that have a significant negative influence on the environment, especially those that extract and produce fossil fuels like coal and oil. The university's larger environmental objectives and climate change mitigation initiatives are in line with this.
Principal elements of Divestment strategy:
1. Evaluation of Existing Assets:
· Examining the university's present investment portfolio in detail to find interests in energy sectors with high carbon emissions.
· Assessing each investment's carbon footprint and environmental impact.
2. Divestment Strategy:
· Staged Divestment: putting into practice a phased strategy to remove investments from carbon-intensive sectors over a predetermined period of time. This makes it possible to switch investments strategically without jeopardizing financial stability.
· Establishing priorities: putting a higher priority on selling off the most carbon-intensive businesses, such coal and oil, while looking into prospects in greener energy sectors.
3. Stakeholder Involvement:
· Interacting with stakeholders to convey the university's divestment plan and dedication to sustainability, including staff, teachers, students, and the general public.
· Working together to exchange best practices and strategies for sustainable investing with other organizations and institutions.
4. Observing and Documenting
· Putting in place a strong structure to track the development of divestiture initiatives and evaluate the financial and environmental effects of investment choices.
· Keeping university stakeholders informed about divestment operations on a regular basis while maintaining accountability and transparency.
Review
The university will evaluate this policy at least every two years. Until a new version of the policy is adopted, the old one will continue to be fully enforceable.
