Sustainable Investment and Divestment Policy

Universitas Islam Sultan Agung (UNISSULA) has established a university-wide policy on sustainable investment and divestment from carbon-intensive energy industries.

The policy is formalised through Circular Letter No. 8393/J/SA/IX/2025, issued on 4 September 2025. It supports sustainable development, carbon-emission reduction, and responsible university investment management.

Through this policy, UNISSULA commits to avoiding new investments in carbon-intensive energy industries and to progressively divesting from existing exposure to such industries, particularly coal and oil.

No New Investment in Coal and Oil

UNISSULA explicitly states that it does not make new investments in companies, business entities, or investment instruments whose principal business activities are based on carbon-intensive energy industries, especially coal and oil.

This policy is intended to ensure that future university investment decisions are aligned with sustainable and low-carbon development.

The university therefore avoids directing new investment toward activities that are strongly associated with high carbon emissions and prioritises more environmentally responsible investment practices.

Progressive Divestment from Existing Exposure

The policy also addresses investments that may already exist.

If UNISSULA holds investments with exposure to coal- and oil-based industries, the university conducts a review and implements progressive divestment from those investments.

The divestment process takes into account:

• institutional governance;
• applicable legal requirements;
• investment risk; and
• the sustainable management of university assets.

This approach allows UNISSULA to reduce exposure to carbon-intensive industries in a structured and responsible manner.

Prioritising Sustainable and Low-Carbon Investment

UNISSULA also directs its investment approach toward sectors that support sustainable development.

The university prioritises investment in areas related to:

• clean energy;
• resource efficiency;
• environmentally friendly technology;
• sustainable development; and
• low-carbon economic activities.

This approach connects the university’s financial decision-making with its wider sustainability commitments.

By prioritising lower-carbon and environmentally responsible sectors, UNISSULA seeks to ensure that investment practices support long-term environmental and institutional sustainability.

Periodic Review of Investment Portfolios

UNISSULA conducts periodic reviews of investment portfolios and financial assets under the authority of the university.

These reviews are intended to ensure continued alignment with:

• the university’s sustainable investment policy;
• its carbon-reduction commitment; and
• its approach to avoiding and divesting from carbon-intensive energy industries.

Periodic review is important because investment portfolios can change over time.

Through regular assessment, the university can identify any exposure to carbon-intensive industries and determine whether corrective or divestment action is required.

University-Wide Institutional Scope

The policy is communicated across the university and addressed to faculty leaders, the Director of RSIGM, heads of bureaus, institutes, technical units, organisational units, and administrative offices within UNISSULA.

This demonstrates that the policy forms part of institutional governance rather than being limited to a single unit or sustainability programme.

The management of university investments and financial assets is therefore expected to consider sustainability and carbon-related risks in accordance with this institutional policy.

Supporting a Low-Carbon Transition

UNISSULA recognises that financial decisions can contribute to the transition toward a lower-carbon economy.

The university’s approach combines four key principles:

avoid new investment in carbon-intensive industries → review existing investment exposure → progressively divest from coal and oil → prioritise sustainable and low-carbon investment

This framework provides a clear direction for responsible investment management while supporting broader environmental sustainability objectives.