7.2.6 : Divestment policy

Energy Policy 

UTM's official Energy Policy provides a clear institutional directive to move away from carbon-intensive sectors through two key objectives:

• The policy's long-term objectives include the goal "To reduce dependency on fossil fuel". This objective mandates a continuous reduction in the use of energy sources derived from coal and oil, thereby diminishing the university’s operational demand that fuels these industries.
• The policy further commits "To utilize renewable energy". This dual mandate ensures that resources are intentionally redirected toward clean energy alternatives, a core principle of carbon divestment strategies.

Furthermore, UTM’s institutional commitment to divestment principles is formalized in its ESG Statement, which explicitly includes "Ethical Financial & Risk Management" and the goal of "Adopting responsible financial planning, ESG-aligned investment strategies".

By formally adopting objectives to reduce reliance on fossil fuels and to shift towards renewable energy, coupled with a commitment to ESG-aligned investment strategies, UTM establishes a policy framework that guides both its operations and financial planning toward the eventual elimination of support for carbon-intensive energy industries like coal and oil. This creates an institutional environment where future formal divestment of investments is a logical and policy-mandated necessity.

Source :

https://sustainable.utm.my/wp-content/uploads/sites/10/2023/10/Energy-Policy.pdf