Over three-quarters of UK universities (78 per cent) have now divested from fossil fuels, revealed by the People & Planet University League 2025.
On top of that, 53 per cent of universities have divested from arms companies, and 28 per cent have cut ties with companies violating international law. The University of York has gone even further, ditching banks who fund fossil fuels – ethical finance goes beyond just direct investments.
This is a massive win for the student movement. It proves that years of student campaigning, petitions and staff allies pushing from the inside are making universities take responsibility for where their money goes.
But here’s the big question: is divestment the final goal, or just the beginning?
More than just saying no
Divestment is a powerful first step, but ethical finance means more than just pulling out of harmful industries.
It means reinvesting in solutions – funding climate justice, community-led initiatives, and truly sustainable research. So, what’s next for student activists and SU officers fighting for change? How can we ensure universities don’t just stop at divesting but actually push for meaningful change?
Universities are supposed to be engines of progress, but while they’ve been divesting, the world has been burning. The climate crisis is accelerating, inequality is deepening, and human rights abuses are happening on a horrific scale.
The financial system is so entangled with harmful industries that simply divesting risks becoming a game of whack-a-mole – cutting off one bad investment while another takes its place.
Divestment is about saying no to harm.
But real change comes from saying yes to impact investment. Impact investment is about supporting initiatives like community-owned renewables, affordable housing, and ethical enterprises. If universities want to be part of the solution, they can’t just withdraw from the worst offenders, they need to actively invest in driving real, positive change.
What about university finances?
One of the biggest excuses universities give for not acting faster is the supposed financial risk. There is growing evidence showing that impact investments lead to little or no drops in returns.
And a landmark High Court ruling now confirming that charities (including universities) can prioritise social and environmental outcomes in their investments, there’s no excuse not to act.
Some universities have already stepped up with 21 institutions (19 per cent) having a commitment to reinvest in renewable companies or community-owned energy on campus. Meanwhile, increasing numbers of charitable foundations with endowments are proving that impact investments can be both ethical and profitable.
Transparency
Right now, only 47 per cent of UK universities publicly disclose their annual investments. This means at over half of UK universities, students and staff have no clue where their institution’s money is going.
Take Edinburgh University, for example. They’re a leader in impact investing, but their transparency? Not so much.
Students fund universities and should have a say in how endowments are invested, but they are routinely excluded. Only 32 per cent of universities include student representatives on investment committees. That has to change.
Excuses, excuses
Too often institutions drag their feet, cite poor timing, financial risks or complexity. But when will the “right” time ever come?
The stakes have never been higher, and the path forward has never been clearer.
Universities have immense financial, social and moral influence, and with that comes responsibility. The real question isn’t whether they can afford to act – it’s whether they can afford not to.
Speaking to NUS President, Amira Campbell, they agreed students are watching their families, friends and loved ones lose their homes and lives through natural disaster. They added that “for students it is clear that we cannot afford to lose more. Universities are institutions that host communities of learners who feel and know that none of us can afford to delay action. And, when that isn’t reflected in a universities’ action, to describe universities as out of touch is an understatement.”
The climate crisis and systematic injustice aren’t abstract issues. They’re here, now. Universities need to step up. Their financial decisions should reflect their purpose of bettering society. Universities have the power to lead a just, sustainable future – not just for their students, but for humanity.
What next?
To ensure university investments align with ethical and sustainability commitments, at SOS-UK we are calling for the following key policy asks:
1. An ethical exclusion policy
2. A growing percentage allocation of the investment portfolio dedicated to impact investments
3. Regular, public disclosure of holdings, voting and engagement activity
4. Student and staff representatives on finance governance boards
By adopting these policies, universities can ensure their investments reflect their values, actively driving positive change rather than causing harm.
If you’re a student, SU Officer, or university staff member looking to ensure your university’s money is used for positive impact, we can help. Join SOS-UK’s Invest for Change Campaign, People & Planets Fossil Free Campaign or contact jo.campling@sos-uk.org.
