Redeemer’s University Policy on Divesting Investments from Carbon-Intensive Energy Industries

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Policy Statement

Redeemer’s University is committed to environmental stewardship, climate responsibility, and the advancement of sustainable development. In alignment with its vision to be a leading faith-based institution driving innovation and sustainability, the University formally adopts this Policy on Divesting Investments from Carbon-Intensive Energy Industries, notably those related to coal, oil, and other non-renewable fossil fuels.

This policy underscores the University’s ethical responsibility to ensure that its financial resources do not contribute to activities that exacerbate global climate change. It reflects the institution’s alignment with national and global climate action goals, particularly Sustainable Development Goal 7 (Affordable and Clean Energy) and Sustainable Development Goal 13 (Climate Action).



Objectives

The primary objectives of this policy are to:

  1. Transition university investments away from companies or sectors that derive significant revenue from fossil fuel extraction, production, or distribution.
  2. Redirect financial resources towards renewable and clean energy projects, sustainable infrastructure, and green innovation.
  3. Promote responsible investment practices that reflect Redeemer’s University’s moral, social, and environmental values.
  4. Strengthen institutional accountability in addressing climate change impacts through financial decision-making.


Scope and Application

This policy applies to:

  1. All university-managed endowments, reserves, and investment portfolios.
  2. Financial partnerships and funding agreements entered into by the University.
  3. Digital Documentation and Virtual Meetings: The university has transitioned to digital record-keeping and virtual conferencing to minimize energy waste from travel and paper production.
  4. Any direct or indirect investments in corporations, funds, or projects involved in the exploration, extraction, or combustion of coal, crude oil, tar sands, or other carbon-intensive energy sources.


Key Principles

  1. Ethical Stewardship: The University recognizes that its financial decisions influence environmental and social outcomes. As a Christian institution, Redeemer’s University upholds creation care as a spiritual and moral duty, promoting responsible and ethical investment practices.
  2. Transparency and Accountability: All investment-related decisions under this policy will be conducted with transparency and communicated publicly through the university’s annual sustainability report.
  3. Progressive Transition: The divestment process will occur in phases to ensure financial stability while achieving meaningful and measurable reductions in exposure to carbon-intensive industries.
  4. Reinvestment in Sustainability: Funds divested from fossil fuels will be reallocated to support renewable energy initiatives, energy-efficient infrastructure, sustainable agriculture, and green technology innovation both within the university and in the wider community.


Implementation Strategy

Phase 1: Assessment and Baseline Mapping (Year 1)

  1. Conduct a comprehensive audit of the university’s current investments to identify direct and indirect exposure to fossil fuel industries
  2. Develop a baseline report categorizing holdings in high-carbon sectors.
  3. Establish a Divestment and Sustainability Committee under the Office of the Vice-Chancellor to oversee implementation.

Phase 2: Strategic Divestment (Years 2–3)

  1. Gradually withdraw investments from companies whose primary business involves coal mining, oil extraction, or fossil fuel-based power generation.
  2. Engage with financial partners to transition investment portfolios toward renewable and clean energy alternatives.
  3. Integrate environmental, social, and governance (ESG) criteria into all future investment decisions.

Phase 3: Reinvestment and Reporting (Year 3 onwards)

  1. Redirect divested funds to green energy start-ups, renewable technology research, and sustainable enterprise development.
  2. Collaborate with government agencies, NGOs, and private investors to support national renewable energy initiatives.
  3. Publish annual progress reports outlining divestment achievements and new sustainable investments.


Governance and Oversight

The Divestment and Sustainability Committee (DSC) will be responsible for:

  1. Monitoring compliance with this policy.
  2. Reviewing the university’s investment portfolio annually.
  3. Recommending sustainable investment opportunities.
  4. Reporting outcomes and progress to the University Governing Council and making findings publicly available.


Monitoring and Evaluation

  1. Annual reviews will assess progress toward complete divestment from carbon-intensive industries.
  2. Key performance indicators (KPIs) will include percentage reduction in fossil fuel-related investments, volume of reinvestment in clean energy, and measurable environmental impacts achieved through those reinvestments.


Alignment with National and Global Frameworks

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This policy aligns with:

  1. The Paris Agreement on Climate Change (2015), committing to limiting global warming to below 1.5°C.
  2. Nigeria’s Energy Transition Plan (ETP), which targets net-zero emissions by 2060.
  3. The United Nations Sustainable Development Goals (SDGs), particularly Goals 7, 12, and 13.


Conclusion

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By adopting this Policy on Divesting Investments from Carbon-Intensive Energy Industries, Redeemer’s University affirms its leadership in driving sustainable change through both education and ethical investment practices. The University recognizes that achieving a low-carbon future requires not only academic commitment but also financial integrity.

Through systematic divestment, reinvestment in renewable technologies, and transparent monitoring, Redeemer’s University positions itself as a model for sustainable university governance in Nigeria and across Africa.

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