How UAntwerp invests its money more sustainable
- UAntwerp temporarily invests financial reserves, for example until a research group needs them to purchase new equipment.
- By 2028, the entire investment portfolio must comply with the Towards Sustainability label and several additional requirements.
- The university limits investments in fossil fuels and excludes, among other things, certain weapons, child labour and human rights violations.
- Sustainability screening also helps to assess financial risks more effectively.
Which reserves does a university invest?
Research groups do not always use their operating funds and budgets immediately. Sometimes they save for several years to purchase a new research instrument or fund a future project. In the meantime, UAntwerp does not simply leave these resources in a current account. The university invests them to avoid a loss of purchasing power due to inflation.
'When products and services become more expensive, the same amount of money buys less than it did a year ago,' says Werner Jacobs, CFO of UAntwerp. 'To prevent that, we manage the money as effectively as possible until research groups need it. To be clear: we do not invest traditional savings or pension reserves. All funds already have a designated purpose.'
UAntwerp works with four external asset managers, each responsible for part of the portfolio. 'Each manager has its own view of the financial markets and places different emphases. By not depending on a single party or strategy, the university spreads its risk,' Jacobs explains.
Why pay extra attention to sustainability?
Any organisation that wants to promote sustainability can hardly ignore the impact of its financial reserves. The rectoral team therefore included sustainable investing in its policy plan. The university wants to align its financial choices more closely with its societal mission.
'We do not think about it enough, but finance is a pivotal sector,' says Professor Luc Van Liedekerke of the Department of Management and the Department of Philosophy. As an economist and ethicist, he helps oversee the sustainability policy for UAntwerp’s investment portfolio. 'The financial sector is a crucial lever. What the financial sector chooses to invest in today determines what the world will look like twenty years from now.'
This does not mean that financial returns become unimportant: returns, risk, costs and sustainability are considered together. 'It is up to our asset managers to apply the new sustainability guidelines professionally to our portfolio.' says Van Liedekerke.
The new rules were approved by the Executive Board in the spring of 2025. An internal investment committee monitors whether the managers comply with both the financial and non-financial agreements.
What does ‘sustainable’ investing mean?
The word ‘sustainable’ appears everywhere these days, including in investment funds and corporate press releases. But what does it mean exactly?
UAntwerp uses the Towards Sustainability label (see box) as its reference point. Van Liedekerke helped establish the label and serves as chairman of its eligibility committee. It focuses mainly on three groups of criteria, commonly referred to as ESG: Environment, Social and Governance. These relate to a company’s impact on the environment and climate, its treatment of people and society, and the way it is governed.
Through Towards Sustainability, the university looks at factors such as CO₂ emissions, human rights, diversity in governance and abuses in the supply chain, such as unsafe working conditions at suppliers. It requires its asset managers to provide full ESG transparency: they must demonstrate in detail where the money is invested and whether all companies, countries and activities involved perform adequately on ESG criteria.
'We are broadening the focus of asset management to include the non-financial information behind an investment,' Van Liedekerke explains. 'We are no longer concerned solely with what a company earns, but also with how it operates.'
What no longer qualifies for investment?
The investment policy document is 60 pages long, but one key aspect concerns fossil fuels. 'We apply strict limits on CO₂ emissions, based on the 2015 Paris Agreement,' says Van Liedekerke. 'These exclude not only major oil and gas companies, but also businesses that derive substantial revenues from thermal coal used for electricity generation.'
In addition, UAntwerp refuses to invest in companies involved in controversial weapons such as landmines, child labour or human rights violations. Problems in supply chains can also lead to exclusion.
Government bonds are only approved if the issuing government meets several requirements. 'Autocracies do not qualify.' says Van Liedekerke. 'A democratic country may invest in defence, but only up to a certain level. We accept defence spending of up to 6% of gross domestic product (GDP). Beyond that, think of Israel, a government is almost by definition involved in an armed conflict.'
Reality, however, is rarely black and white. A company may make progress on climate issues while still performing poorly on labour rights.
Van Liedekerke: 'The name Towards Sustainability reflects our approach: we set a minimum threshold and indicate a direction. Yes, you can still find American technology companies in our portfolios. But a company like SpaceX does not qualify for several reasons. Towards Sustainability seeks a workable consensus and aims to encourage sustainable development.'
'What the financial sector chooses to invest in today determines what the world will look like twenty years from now.'
Which projects receive additional opportunities?
Sustainable investing is not only about avoiding harmful activities. UAntwerp also invests part of its resources in projects that contribute to a more sustainable world.
'By 2028, at least 3% of the portfolio must consist of impact investments,' says Jacobs. “This includes, for example, investments in local energy-efficient social housing or start-ups developing medical innovations.'
'In addition, at least 15% of the portfolio must be invested in so-called Article 9 products by 2028. Within European sustainability reporting, this category covers financial products with an explicit sustainable objective.'
The transition is taking place step by step. Jacobs explains: 'Transforming a large portfolio in one single move would create excessive costs. Managers also need time to adapt their systems and products. The full transition must be completed by 2028. However, our portfolio is already more sustainable than average today.'
Doesn't more sustainable investing reduce returns?
Excluding more companies and sectors inevitably reduces the number of investment opportunities available. Nevertheless, according to Jacobs and Van Liedekerke, this does not automatically lead to lower returns.
'In recent years, sustainable passive index funds, such as exchange-traded funds (ETFs) that allow investors to track specific indices, have performed very similar to trackers that follow the broader stock and bond markets.' says Van Liedekerke.
'Because a sustainable index fund is based on a smaller number of companies, some consider it slightly riskier. On the other hand, sustainability information makes risks more visible that do not appear in financial statements. An ESG screening actually helps to assess long-term financial risks more accurately. And that does not even take societal returns into account.'
'The full transition must be completed by 2028. However, our portfolio is already more sustainable than average today.'
How does UAntwerp know the approach is working?
Asset managers regularly report to UAntwerp on their investments and the returns they achieve. Within the university, an investment committee reviews the proposed decisions and the accompanying explanations.
'As a university, we have the expertise in-house to examine the figures ourselves from time to time,' says Van Liedekerke. 'It takes time to verify all that information. Fortunately, doctoral students occasionally help to review analyses and ensure that our investments deliver the desired financial and societal outcomes.'
The new sustainable investing approach remains a process of measuring, monitoring and adjusting. 'But that is precisely what makes it interesting, both for ourselves and for anyone who wants to learn from our approach.' Van Liedekerke concludes.
Towards Sustainability: also for the small or individual investor
The Towards Sustainability label guarantees that certified products comply with strict minimum sustainability criteria. It is regarded as one of the most comprehensive sustainability standards for financial products in the European Union. At present, almost €500 billion is managed in accordance with the Towards Sustainability criteria.
UAntwerp uses the label as the foundation of its investment approach. It also provides a reliable framework for private investors, which can then be supplemented with their own preferences and convictions. Through the label’s website, investors can explore which sustainability themes matter most to them and identify products that match their risk profile.