Sustainable Investment Policy
Universitas Islam Internasional Indonesia (UIII) has officially implemented a Sustainable Investment Policy on Cash and Endowment Fund Management. This commitment is formally established and regulated through the Rector’s Circular Letter Ref. No.: 1b/Rek/UIII/SE.01/1/2025, issued on January 2, 2025.The policy ensures that all placements of the University’s operational funds and Endowment Fund are managed in integration with Environmental, Social, and Governance (ESG) principles. As a manifestation of the Sustainable Development Goals (SDGs) and Maqashid Sharia, the regulation serves as a binding guideline for all financial management units to realize green campus governance that is ecologically responsible and financially rational.To ensure financial operations remain flexible while meeting global sustainability reporting standards, UIII established investment risk management with the following strategic approaches:Direct Investment Negative Screening: The University enforces a strict exclusionary policy, strictly prohibiting direct capital placement in business entities whose primary revenue is derived from the exploration and exploitation of fossil fuels. The prohibition also extends to activities causing illegal deforestation, massive ecological damage, the armaments industry, tobacco, and activities violating human rights.Indirect Investment ESG Partnership: For indirect investment instruments like Demand Deposits, Time Deposits, and Mutual Funds, UIII utilizes an ESG Partnership Priority scheme. The University prioritizes fund placement in banks or Investment Managers that comply with the Financial Services Authority (OJK) regulations on the Implementation of Sustainable Finance. Additionally, these partners must publish an annual Sustainability Report detailing their ESG integration initiatives.Pass-Through ESG Reporting: The management of investment instruments in partner banks operates on a pass-through basis. This means the responsibility for sustainable portfolio reporting is deferred to the official publications of the respective partner banks, exempting the University from compiling internal carbon footprint accounting for these funds.