Oxford ranked second highest university arms trade investor
A new national study has placed Oxford as the second highest university in an ‘Ivy League’ of investors in the arms trade. Nearly 50 per cent of the 152 educational institutions surveyed by the Campaign Against Arms Trade (CAAT) are significant investors in the industry, and Oxford comes second only to Cambridge in a top ten list of offenders that collectively hold nearly 33 million shares.
First place is occupied not by a university, but by the Universities Superannuation Scheme, a staff pension scheme that has a total of 24,485,381 shares in arms companies. Research was carried out under new Freedom of Information legislation, compiling details of universities’ shareholdings in six of the UK’s largest arms dealers including BAE Systems, Smiths Group and Rolls Royce.
Colleges were questioned individually on their investments in arms companies, and whilst many have no involvement with any of the listed traders, several, including All Souls and Merton, hold shares in all six. St John’s continue to be the most prolific investor out of all Oxford colleges. The Oxbridge college which invests most in the arms trade, Trinity College, Cambridge, holds more arms company shares than all but two of the non-Oxbridge universities in the study.
Tim Davies, an active member of the university’s Social Justice Committee, said “it is utterly ridiculous that a university which contributes so much positively to education and learning should be using its funds to support companies involved in selling arms to countries in conflict.
“The university needs to think hard about the message it is sending out through its investments, and totally overhaul the way it makes investment decisions to ensure ethical and social responsibility considerations are always considered and acted upon.
Campaigner Jo Wittams, who researched the figures, said, “Although historically committed to internationalism and human progress, the wealth [of these universities] provides major funding for a trade that fuels international tensions, and for companies that regularly arm human rights abusers and conflict zones.
A spokeswoman for the university said in a statement: “As a charitable institution, the university must ensure that the funds are invested efficiently and effectively to maximise returns. “However, the university is sensitive to socially responsible investment issues which need to be considered, and we continue to encourage our fund managers to support a socially responsible investment approach across the investment portfolio.
“Since 2002 the university has endorsed the approach contained with the Good Corporation Charter, and instructs fund managers to pursue the adoption of the core principles contained within it when speaking to companies in which they were investing. “The university is committed to discussing and encouraging companies to sign up to this policy to benefit them, as well as their wider stakeholders.
She also said that the university, as a charity, tends to invest in low-cost, passive funds which track shares on the FTSE 100. As a result, “there is a wider range of companies in a basket of passive shares,” she added. However, top universities in the USA have implemented strong Socially Responsible Investment policies, and the Social Justice Committee believe it would not be difficult for Oxford to take a similar line.
“There are organisations like the Ethical Investment Research Service (EIRIS) which can take a list of college shareholdings and match the yield with shares in socially responsible business. “All it requires is a commitment from colleges and bursars to positive stewardship of their investments,” insisted Davies.
27th Oct 2005