I. Purpose
This policy defines the principles and guidelines for sustainable investment by the University of Chittagong. It aims to ensure that all investment activities are conducted in a manner that is consistent with the university’s commitment to sustainability, ethical considerations, and the financial stability of its funds.

II. Scope
This policy applies to managing all university funds, including pension, provident, and other financial reserves. It covers all investments made by or on behalf of the University of Chittagong.

III. Policy Objectives
i. To integrate sustainability considerations into investment decisions without compromising financial performance.
ii. To ensure that all investment activities reflect the university’s ethical standards and its commitment to social responsibility.
iii. To enhance transparency and accountability in investment processes.
iv. To contribute to the community’s and nation’s economic stability and sustainability.

IV. Investment Principles
a) Risk Management: Ensure that all investments undergo a thorough risk assessment, considering both financial returns and sustainability impacts.
b) Selection Criteria: Invest in entities that demonstrate a commitment to sustainable practices within the scope permitted by Bangladesh financial regulations.
c) Diversity: Diversify investments to minimize risks and maximize returns across different sectors that align with sustainability goals.
d) Transparency and Accountability: Maintain high levels of transparency in reporting investment decisions and outcomes to stakeholders.

V. Strategies and Implementation
a) Investment in Financial Institutions:
i. Prioritize investment in banks and non-banking financial institutions recognized for higher sustainability practices, even if these are varied.
ii. Regularly review and evaluate the sustainability status of financial institutions as part of the investment decision-making process.
b) Equity Investments:
i. Due to the lack of a focused sustainability stock market segment, invest in companies with corporate policies that support ethical practices, community engagement, and environmental responsibility.
ii. Engage with companies to encourage the development of sustainability-focused practices and reporting.
c) Fixed Income Instruments:
i. Invest in government or municipal bonds that fund projects aligned with sustainable development goals, such as renewable energy projects, education, and healthcare infrastructure.
d) Monitoring and Review:
i. Implement an annual review of investment portfolios to assess their alignment with sustainability objectives and financial performance.
ii. Adjust investment strategies based on evolving sustainability practices and market conditions.

VI. Compliance and Review
i. Compliance: Ensure adherence to this policy by all those responsible for managing university funds.
ii. Policy Review: This policy shall be reviewed every two years or as necessary to reflect changes in regulatory requirements, market conditions, and the university’s sustainability commitments.

VII. Reporting
i. Annual Reporting: Publish an annual sustainability and investment report detailing the performance and sustainability impact of the university’s investments.
ii. Stakeholder Engagement: Engage regularly with stakeholders, including university staff and students, to gather feedback and discuss the outcomes of investment activities.