Prosper Social Finance: Pioneering Sustainability in Investment and Education at the University of Edinburgh
Updated: Mar 27, 2024
The University not only demonstrates its commitment to achieving sustainability goals but also seeks to instill these values in its curriculum and the next generation. Prosper Social Finance is proof of this commitment. It is the UK’s first socially responsible investment fund that is dedicated to making investments in companies like Cisco, Philips, and xylem that have exceptional ESG scores and policies.
The university supports these value-driven student analysts by allocating £10,000 annually for five years.
The fund employs an approach of investing in companies that fall into the ESG Criteria but also give equal importance to their core values. A few such examples include their investments in Agilent and Microsoft Corporation which were in the talks due to their scandals but were attractive to Prosper due to their response to policy adjustments and values which have been successful in justifying the integrity of the company.
The fund currently has invested in 3 chemical companies: Lenzing, Novozymes, and Yara which are a part of a controversial industrial sector, a sector which is widely known for its high contribution to global emissions. In 2021, the chemical industry’s global emissions totaled approximately 925 million metric tons (MT) of CO2, accounting for around 2 percent of total emissions. All of these three companies show great commitment to sustainability guidelines and reporting.
Prosper Social Finance was named a finalist in the 2018 Green Gown Awards, which recognizes exceptional sustainability initiatives undertaken by the world's leading universities and colleges
Green Gown Awards 2018 - Prosper Social Finance CIC and the University of Edinburgh - Finalist
This social enterprise aims to create a positive social impact whilst educating youngsters about responsible investing. All the profits from the portfolios are channelled back into the Edinburgh community through grants which are invested in socially beneficial projects selected by Prosper’s senior analysts.
Through initiatives like Prosper Social Finance, the University of Edinburgh continues to invest in a sustainable future while educating a generation of socially conscious leaders who will prioritize responsible investing.
Resources:
www.mckinsey.com. (n.d.). Decarbonizing the German chemical industry | McKinsey. [online] Available at: https://www.mckinsey.com/industries/chemicals/our-insights/decarbonizing-the-chemical-industry.
www.greengownawards.org. (n.d.). International Green Gown Awards | Green Gown Awards. [online]
Available at: https://www.greengownawards.org/international-green-gown-awards#:~:text=Recognising%20exceptional%20sustainability%20initiatives%20being [Accessed 4 Mar. 2024].
prospersocialfinance.co.uk. (n.d.). Our Programmes. [online] Available at: https://prospersocialfinance.co.uk/programmes-overview/ [Accessed 4 Mar. 2024].
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