European asset manager Amundi has been selected by a coalition of UK Higher Education Institutions (HEIs), spearheaded by the University of Cambridge, to establish a cash fund excluding companies involved in global fossil fuel expansion. The fund will not include fossil fuel companies, utilities, banks, insurers, and other entities contributing to this expansion. Companies may become eligible for inclusion if they cease such activities.
Anthony Odgers, University of Cambridge Chief Financial Officer, stated, “This is the first cash fund we know of that will avoid providing liquidity to financial institutions who continue to finance companies that are building new infrastructure, such as coal- and gas-fired power plants, which will lock in fossil fuel combustion for decades.”
The coalition, led by Cambridge, comprises 79 UK colleges, universities, and institutions, including the University of Oxford, London School of Economics, University of Edinburgh, and University College London. Members plan an initial investment of nearly £500 million in the fund, allowing short-term cash-like investments without contributing to fossil fuel expansion.
The fund is slated to launch by the end of 2025, with additional seed investors anticipated to join. Jean-Jacques Barbéris, Head of Institutional & Corporate Clients Division and ESG at Amundi, expressed commitment to responsible investment solutions facilitating a transition to an inclusive, low carbon economy while delivering sustainable value.
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