Sustainable Investment Policy

Universities today are expected not only to provide education and generate knowledge, but also to demonstrate responsible leadership in how they manage their resources, partnerships, infrastructure, and long-term financial decisions. In a period marked by climate change, resource pressure, economic volatility, and technological transformation, higher education institutions are increasingly required to ensure that their financial activities are aligned with sustainability, resilience, and social responsibility.

Termez University of Economics and Service recognizes that financial stewardship is an important part of institutional governance. The way in which the University manages reserves, development-related funds, long-term financial assets, and investable resources has implications not only for financial returns, but also for institutional credibility, environmental responsibility, and long-term strategic resilience.

The University also recognizes that sustainable investment is not limited to climate issues alone. It includes the broader consideration of environmental, social, and governance factors, including responsible business conduct, human wellbeing, lawful compliance, transparency, and consistency with the values of a public-facing educational institution.

Within this context, TUES adopts this Sustainable Investment Policy in order to establish a principled approach to the management of investable funds and related financial decisions.

The purpose of this Policy is to ensure that investment decisions undertaken on behalf of Termez University of Economics and Service are aligned with the University's mission, strategic priorities, governance standards, and commitment to responsible institutional development.

TUES understands that investment activity, where it exists, should serve the legitimate educational and developmental purposes of the institution. Investment is not an end in itself. Rather, it is a mechanism through which the University may seek to preserve value, strengthen resilience, support future-oriented development, and generate returns that can be directed toward academic improvement, student support, infrastructure modernization, digital transformation, and research development.

Through this Policy, TUES seeks to create a disciplined and transparent framework for sustainable investment practice, affirming that financial decisions must strengthen, rather than weaken, institutional integrity.

This Policy applies to investment-related decisions made on behalf of Termez University of Economics and Service in relation to funds, reserves, financial assets, long-term allocations, development funds, and any other investable resources that fall within the authority or responsibility of the University's governance and management structures.

The scope includes investment decisions undertaken directly by the University, investment decisions undertaken through appointed fund managers or financial intermediaries, and any investment-related mandates created for the purpose of preserving or increasing the value of institutional funds over time.

Where the University does not currently operate a formal endowment structure, this Policy shall nonetheless apply to all comparable investable funds or financial resources that are managed with a medium- or long-term perspective.

TUES affirms that all investment-related decisions undertaken in its name should be guided by a coherent set of principles consistent with the identity and responsibilities of a higher education institution.

The first principle is that investment activity must serve the educational, scientific, administrative, and developmental mission of the University. Financial returns are important, but they are not the sole criterion.

The second principle is that sustainability must be treated as an integral part of responsible investment decision-making. Environmental, social, and governance considerations shall be integrated into the evaluation of investment opportunities.

The third principle is that institutional resilience requires long-term thinking. The University should seek investment approaches that are prudent, transparent, and compatible with future institutional stability.

The fourth principle is that the University must avoid investment activity that would clearly conflict with its academic mission, ethical commitments, or public role.

The fifth principle is that oversight and responsibility matter. Sustainable investment requires internal governance, appropriate review, informed decision-making, and regular reporting.

Termez University of Economics and Service may manage certain categories of funds, reserves, or long-term financial resources in a way that requires investment-related judgment. The University shall seek to preserve capital, protect institutional interests, and where appropriate generate returns that support strategic priorities such as educational improvement, research development, digital capacity, infrastructure modernization, and student support.

The University shall not approach investment solely as a matter of return maximization. Instead, TUES shall seek an investment approach that balances return, risk, institutional purpose, and sustainability considerations.

TUES is committed to embedding sustainability considerations into the management of any investable institutional funds under its authority. The University shall seek, to the extent feasible and proportionate, to avoid direct investment in sectors or activities that are clearly inconsistent with its mission — including sectors associated with severe environmental harm, major climate damage, or serious human rights concerns.

At the same time, TUES shall seek to encourage investment approaches that support the transition toward a more sustainable economy, including renewable energy, energy efficiency, sustainable technologies, circular economy solutions, and low-carbon infrastructure.

Where TUES appoints external fund managers, advisers, or other third-party financial managers to act on its behalf, the University shall seek to ensure that such appointments are consistent with this Policy. The appointment process should therefore consider not only professional competence, governance quality, and financial performance, but also the extent to which the proposed manager demonstrates credible integration of environmental, social, and governance factors into its investment process.

The University expects appointed fund managers to be able to explain clearly how they identify and manage ESG-related risks, how they approach stewardship and engagement, how they deal with controversial sectors, and how they report sustainability-related information to clients.

Once appointed, fund managers should remain subject to appropriate review and should provide regular reporting that includes not only financial performance information, but also relevant information on sustainability-related metrics and major ESG risks.

Responsibility for ensuring that investment-related activity undertaken on behalf of TUES is aligned with this Policy shall rest with the University's senior financial and administrative leadership, acting under the authority of the Rectorate and relevant governance bodies.

Implementation of the Policy requires the incorporation of sustainable investment expectations into internal financial procedures, investment mandates, manager selection processes, oversight arrangements, reporting formats, and review cycles.

TUES also recognizes that implementation may develop progressively over time. The University may apply the Policy in a phased and proportionate way, while maintaining the expectation that all investment-related activity should move steadily toward stronger sustainability integration, better transparency, and more disciplined oversight.