The investment activities of LUT Universities (LUT University and LAB University of Applied Sciences) are governed by the Universities Act, the University of Applied Sciences Act, LUT and LAB regulations, securities legislation, the investment strategy approved by the LUT and LAB boards, policy outlines by the investment committee, and obligations and generally accepted principles applying to public entities.
The investment capital of LUT Universities consists of fixed capital, donations placed in reserves, and liquid assets. In the planning of investments, attention is paid to the liquidity of both institutions and to securing cash reserves.
Investment activities aim to make LUT’s and LAB’s investments profitable – taking responsibility into consideration – to guarantee liquidity for daily payment transactions by making investments flexible, to increase financial stability at LUT and LAB in the long run, and to support LUT and LAB in implementing their strategies with the help of returns on investments.
The long-term (ten-year span) average annual profit target is 5%. Returns on invested capital will be used in accordance with board decisions for measures aiming for the strategic renewal of LUT and LAB (excluding dependent foundations), where funding needs vary annually. Portfolios outsourced to asset managers are taken care of solely through funds.
Division of investments 31 December 2023
Responsibility and sustainable development
Responsibility and commitment to sustainable development are essential in LUT’s and LAB's values and strategies. Responsible investment activities must support both institutions’ goals concerning carbon-neutrality and the UN’s Sustainable Development Goals (SDGs). LUT University aims to be carbon-neutral by the end of 2024, and the LAB University of Technology aims to do so by 2030.
Both institutions require their asset managers to commit to the UN’s Principles for Responsible Investment. Investments are chosen taking LUT's and LAB’s responsible investment obligations into consideration and require environmental, social and governance (ESG) reporting in addition to conventional profit and risk indicators.
Responsible investment takes into consideration eco-friendliness, the preservation of biodiversity, the promotion of the EU’s climate targets, sustainable development, human rights, equality and responsible governance.
LUT Universities report on the sustainability risk and carbon footprint of their investment portfolios through Sustainalytics. The sustainability risk and carbon footprint are clearly lower than the benchmark index. The ESG coverage relates the percentage of equity investments with a Sustainalytics ESG rating.
Further information
