Responsible Investment and Divestment Policy

1. Preamble

Kalinga University recognizes that institutional financial decisions can contribute to environmental sustainability and the transition towards affordable, reliable and clean energy. The University therefore seeks to integrate responsible investment considerations into investment decisions over which it has direct discretion, while safeguarding financial stability, liquidity, statutory compliance and its fiduciary responsibilities.

This Policy supports Sustainable Development Goal 7 (Affordable and Clean Energy) by establishing principles for responsible investment, preference for sustainable and low-carbon opportunities, avoidance of new direct exposure to materially carbon-intensive activities, and a transparent process for reviewing and, where appropriate, divesting investments that are inconsistent with the University's sustainability commitments.

2. Principles

• Fiduciary Responsibility: Investment decisions shall protect the University's financial interests, liquidity requirements, risk tolerance and long-term institutional sustainability.
• Environmental Responsibility: Environmental and climate-related impacts shall be considered, where relevant and information is reasonably available, alongside financial factors.
• Preference for Clean Energy: Renewable energy, energy efficiency, green infrastructure and sustainable technologies shall receive positive consideration where they meet financial, legal and risk requirements.
• Responsible Exclusion: The University shall seek to avoid new direct investments in activities whose principal business is materially dependent on high-carbon fossil-fuel extraction or other environmentally harmful activities inconsistent with this policy.
• Orderly Divestment: Divestment shall be evidence-based, documented and phased where necessary to avoid unreasonable financial loss or breach of contractual obligations.
• Transparency and Accountability: Investment screening, review and divestment decisions shall be appropriately documented and subject to institutional oversight.
• Continuous Improvement: The Policy shall evolve with regulatory requirements, sustainability standards, investment opportunities and institutional priorities.

3. Objectives

• Align discretionary institutional investments with Kalinga University's sustainability commitments and SDG 7.
• Promote investment, where feasible, in renewable energy, clean technologies, energy efficiency and environmentally responsible enterprises.
• Reduce new direct financial exposure to materially carbon-intensive and environmentally harmful activities.
• Establish a structured process for identifying, reviewing and, where appropriate, divesting investments inconsistent with this Policy.
• Integrate environmental, social and governance considerations into investment due diligence where relevant and practicable.
• Ensure responsible investment decisions remain consistent with applicable law, financial prudence, liquidity needs and fiduciary obligations.
• Maintain appropriate documentation to support monitoring, accountability and sustainability reporting.

4. Scope and Applicability

This Policy applies to institutional investments, deposits, funds, endowments, reserves or other financial assets over which Kalinga University has direct investment discretion or can reasonably influence investment selection. It does not require the University to control the underlying holdings of statutory schemes, regulated pooled products, government-mandated funds or third-party instruments where the University has no practical authority over individual asset selection.

The Policy shall be implemented proportionately, taking into account the nature of each financial instrument, availability of reliable information, contractual restrictions, liquidity requirements, investment risk and approval procedures.

5. Responsible Investment Guidelines

5.1 Environmental, Social and Governance Considerations

• Investment evaluation shall primarily consider safety, return, liquidity, diversification and compliance, while also considering relevant environmental, social and governance factors.
• Where comparable investment alternatives are available, preference may be given to options demonstrating stronger sustainability performance.
• Material environmental risks, including dependence on high-carbon energy, pollution, resource inefficiency and significant regulatory exposure, should be considered where reliable information is available.
• Investment decisions shall avoid unsupported sustainability claims and should rely on verifiable information from regulated financial institutions, issuers, fund managers or recognized disclosures.

5.2 Priority Areas for Sustainable Investment

Subject to financial prudence, applicable regulations and availability of suitable instruments, the University may give positive consideration to investments or financial products supporting:

• Solar, wind and other renewable-energy generation.
• Energy-efficiency technologies and energy-saving infrastructure.
• Green buildings and sustainable campus/infrastructure development.
• Energy storage, smart grids, clean mobility and electric-vehicle infrastructure.
• Waste-to-energy, biogas and circular-economy solutions.
• Climate-resilient and environmentally responsible enterprises.
• Green bonds, sustainability-linked instruments or other regulated products with credible environmental objectives.

5.3 Restricted / Avoided Investment Areas

Where the University has direct discretion over asset selection, it shall seek to avoid new direct investments in enterprises whose principal business is materially associated with:

• Coal extraction and thermal-coal expansion.
• Oil and gas extraction projects with high carbon intensity and no credible transition pathway.
• Activities causing serious and persistent environmental damage or repeated material violations of applicable environmental law.
• Enterprises whose core operations are demonstrably inconsistent with the University's sustainability and ethical commitments.

These restrictions shall be applied after reasonable due diligence and shall not be interpreted as requiring immediate disposal of indirect or immaterial exposures within diversified funds over which the University has no control.

5.4 Divestment and Transition Framework

If an existing discretionary investment is identified as materially inconsistent with this Policy, the concerned authority shall initiate a documented review. Divestment shall not be automatic solely on the basis of sector classification; the review shall consider materiality, financial impact, contractual restrictions, liquidity, availability of alternatives and the investee's credible transition actions.

• Step 1 - Identification: Screen relevant investments for material inconsistency with the Policy.
• Step 2 - Verification: Confirm the nature and materiality of the exposure using reliable information.
• Step 3 - Review: Assess financial, legal, contractual, risk and sustainability implications.
• Step 4 - Decision: Retain with conditions, engage/review later, reduce exposure, or approve phased/full divestment.
• Step 5 - Reinvestment: Where appropriate, redirect released funds towards financially prudent investments aligned with sustainability and clean-energy objectives.
• Step 6 - Documentation: Record the basis, approval and implementation status of the decision.

5.5 Due Diligence and Investment Screening

• The Finance & Accounts function shall maintain an updated list of material discretionary investments covered by this Policy.
• New investment proposals should, where relevant, include a brief sustainability screening alongside conventional financial evaluation.
• Material holdings may be reviewed periodically for sector exposure, environmental controversies and alignment with the University's sustainability priorities.
• Where information is unavailable or uncertain, the University shall avoid making unsupported claims regarding the sustainability characteristics of an investment.

5.6 Engagement with Financial Institutions and Fund Managers

• The University may communicate its responsible-investment preferences to banks, asset managers, investment advisers and other financial service providers.
• Where practical, the University may request information on environmental, social and governance screening, fossil-fuel exposure, renewable-energy allocation or sustainability characteristics of proposed products.
• Preference may be given to regulated financial products and service providers that provide transparent, credible and auditable sustainability information, subject to financial suitability.

6. Governance and Responsibilities

7. Monitoring, Disclosure and Evidence

• The University shall maintain records of investment decisions covered by this Policy, subject to confidentiality and financial-governance requirements.
• Periodic review may include the value and type of covered investments, sustainability-screening status, restricted exposures identified, divestment decisions taken and sustainable investment opportunities considered.
• Evidence may include approved policy documents, committee minutes, investment statements, due-diligence notes, correspondence with financial institutions, approved divestment decisions and sustainability-related financial product documentation.
• Public sustainability reporting shall present only verified information and shall not disclose confidential financial details unless authorized.
• Implementation progress may be incorporated into SDG 7, sustainability, annual or institutional reporting as appropriate.

8. Review and Continuous Improvement

• This Policy shall be reviewed at least once every three years, or earlier if required by changes in law, investment regulations, market conditions, sustainability standards or University priorities.
• The University may progressively strengthen screening criteria as reliable data and suitable responsible-investment products become available.
• Any material exception to the Policy shall be documented with reasons and approved by the competent authority.
• Implementation shall balance sustainability objectives with financial prudence, fiduciary responsibility and the long-term interests of the University.

9. Approval and Implementation

• This Responsible Investment and Divestment Policy shall come into effect from the date of approval by the competent authority of Kalinga University. It shall apply to all concerned offices and committees involved in institutional investment, financial management, sustainability reporting and related decision-making.
• The Policy establishes a forward-looking framework. It does not, by itself, represent that the University currently holds or has already divested any particular investment. Any claim regarding actual investment allocation or divestment shall be supported by verified financial records and approvals.