Resolution To Congregation

''The following Resolution was submitted to Oxford University's Congregation (the University's highest decision-making body) in May 2006. It was accepted without amendment by University Council, and so a meeting of Congregation was not required. See Oxford University for the full story.''

Congregation believes:

(i) That the University should consider the social, moral and environmental impact of its investment decisions alongside concerns for the maximization of financial returns.

(ii) That Oxford University should agree a credible Socially Responsible Investment (SRI) policy.

(iii) That a credible SRI policy will take into account the impact of the actions of companies on all stakeholders, and will be backed up by a strategy for engagement or screening (divestment).

Congregation notes:

(i) That the University Investment Committee manages over £400m of University and college funds and endowments (through the Trusts Pool).

(ii) That the sole social consideration currently included in University Investment policy states that the Investment Committee should 'instruct fund managers to pursue the adoption of the core principles contained within [the Good Corporation Charter], when speaking to companies in which they are investing'.

(iii) That the Good Corporation Charter (GCC) is a voluntary Corporate Social Responsibility (CSR) tool for self-assessment that gives no consideration to stakeholders other than a company's shareholders and employees. It therefore fails to constitute a credible approach to Socially Responsible Investment (SRI).

(iv) That adopting a Socially Responsible Investment policy does not involve sacrificing financial returns. Recent studies have shown no difference between the overall performance of funds with SRI criteria as against non-SRI funds, and many SRI funds outperform the non-SRI average.

Congregation further notes:

(i) There are a wide range of effective mechanisms for implementing a credible Socially Responsible Investment policy, and incorporating and balancing social, moral and environmental criteria alongside financial considerations. These include the selection of specific ethically managed funds, the screening of investments based on accepted industry standards such as the FTSE4Good Index or the use of customized ethical portfolio management software from organizations such as the Ethical Investment Research Service (EIRiS).

(ii) In the UK, SOAS, UEA and Edinburgh Universities, and the Universities Superannuation Scheme (USS) have implemented SRI policies without financial detriment. SRI policies have also been adopted in the United States by many Ivy League Universities including Columbia, Yale, Harvard, Dartmouth College and the University of Pennsylvania.

Congregation resolves to mandate the University Council to:

(i) Seek advice from independent consultants on the range of SRI options available and their financial implications.

(ii) On the basis of this advice, develop a clear and credible Socially Responsive Investment policy setting out standards that specifically take into account the impact of company behaviour on all stakeholders and the environment.

(iii) Bring forward a resolution to establish a Joint Committee on Socially Responsible Investment, with junior and senior representatives of the University community. This committee should periodically review and assess the university's investments against its defined SRI policy and make recommendations to University Council and Investments Committee for future investment policy and decision-making.

(iv) Publish suitable details of University Investments on an annual basis and report on the action that has been taken to ensure compliance with the SRI policy developed.

Proposed by:

Dr Nick Brown, Linacre College Dr Mark Cannon, St John's College Professor Gordon Clark, St Peter's College Dr Martin Conway, Balliol College Dr Ann Childs, Lady Margaret Hall Dr Christopher Davies, Kellogg College Dr Edmund Valpy Fitzgerald, St Antony's College Professor Sandra Fredman, Exeter College Professor John Furlong, Green College Dr Nandini Gooptu, St Antony's College Mr Andrew Glyn, Corpus Christi College The Revd Dr Mark Harris, Oriel College Dr Geoffrey Hayward, Kellogg College Professor Basil Kouvaritakis, St Edmund Hall Dr Paul Martin, Wadham College Dr Andrew Moore, St Peter's College Dr Abdul Raufu Mustapha, St Antony's College Dr Karma Nabulsi, St Edmund Hall Dr Kalypso Nicolaïdis, St Antony's College Professor Terence James Reed, The Queen's College Dr Laura Rival, Linacre College Dr Alexander Sedlmaier, Wadham College Dr Marc Stears, University College Professor Alan Stein, Linacre College Professor Frances Stewart, Somerville College Mr Bernard Sufrin, Worcester College Dr Bernd Wannenwetsch, Harris Manchester College Dr David Washbrook, St Antony's College Dr Jeremy Watkins, Corpus Christi College Dr Anne Watson, Linacre College Dr Stuart White, Jesus College Mr Gavin Williams, St Peter's College E. Swyngedouw, St Peter's College

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