Sustainable Investment Policy (2025-2030)

SUSTAINABLE INVESTMENT POLICY (2025-2030)

Prepared by: Planning and Finance Department
Implementation period: 2025-2030
Scope: All structural divisions, projects, and investment activities

This policy aims to embed economic efficiency, environmental responsibility, and social sustainability principles into the institution's investment activities. It has been developed in accordance with the Law of the Republic of Uzbekistan on Investments and Investment Activity, international sustainable development principles, and green economy approaches.

PURPOSE AND OBJECTIVES

The policy seeks to optimize costs, reduce negative environmental impact, and create social value through sustainable investments. Its objectives include assessing medium- and long-term economic efficiency over 5-10 years, identifying potential economic risks and designing mitigation measures, making objective investment decisions, ensuring compliance with ESG (Environmental, Social, Governance) and sustainability principles, integrating ESG criteria into investment processes, reducing ecological impact, generating social value, managing financial risks, and reducing corruption risks while strengthening transparency.

The policy applies to capital investments, infrastructure projects, public-private partnership initiatives, international grants, investments involving international financial institutions, and technology or energy modernization projects.

INVESTMENT PRINCIPLES

Investment activities are guided by ESG (Environmental, Social, Governance), SDG (Sustainable Development Goals), green economy principles, and national legal requirements. Innovation principles include the use of green technologies and digital solutions. Environmental principles include reduced carbon emissions, energy efficiency, and efficient use of water resources. Social principles include labor rights, health and safety, and inclusive development. Governance principles include transparency, anti-corruption policy, and accountability.

PROHIBITED INVESTMENTS

The University does not invest in coal-based energy projects, the tobacco industry, weapons manufacturing, projects causing serious environmental harm, or companies associated with human rights violations.

ESG evaluation system

Each investment project is assessed based on ESG criteria.

Minimum ESG score: 60. Projects scoring below 60 are not financed. Investment decision-making proceeds through the submission of a project proposal, financial analysis (NPV, IRR, ROI), ESG assessment, risk analysis, and review by the investment committee.

Project data collection

For each investment project, data are collected on project type, technology used, sector of activity, projected costs, revenues, financial flows, and debt or financing conditions. The project concept, objective, and implementation area are then defined. The project description explains the location, technology, and type of activity in detail. Legal analysis is carried out to assess compliance with national legislation and international standards.

Environmental analysis evaluates impacts on air, water, soil, and biodiversity. Social analysis examines effects on public health, employment, migration processes, and social relations. During the impact assessment stage, both positive and negative effects are identified. Mitigation and compensation measures are developed to reduce negative impacts.

A monitoring plan is prepared, defining responsible actors, control methods, timelines, and assessment indicators. The final stage involves project approval and recommendations for confirmation or improvement. Economic efficiency is assessed through NPV, IRR, ROI, and payback period indicators. Risk analysis covers environmental and social, financial, operational, legal, and political risks. Scenario analysis considers optimistic, pessimistic, and baseline cases. More advanced analysis may use Monte Carlo simulations and include waste and energy costs.

Projects are integrated with ESG indicators. Financing sources may include the state budget, targeted funds, international financial institutions, green bonds, and private investment. Monitoring and reporting define annual KPIs, ESG reports, and corrective measures for detected shortcomings. Internal audit continuously evaluates compliance and effectiveness. Investment projects are monitored on a regular basis.

Key indicators:

Note: Results are disclosed in the annual sustainability report.

Sustainable investment committee

Investment decisions are reviewed by a committee composed of the rector or vice-rector, head of the finance department, a representative of the sustainable development unit, a technical expert, and an external independent expert.

Final provision

This policy enters into force in 2025 and remains valid until 2030. It may be reviewed and updated by the Planning and Finance Department whenever necessary. In all cases, the policy is reviewed every three years or updated as required.