The Banking Engagement Forum (BEF) has been recognised with one of the University’s prestigious Excellence Awards, celebrating its outstanding contribution to enhancing environmental sustainability.
In 2023, after three years of collaboration with the major banks serving the University of Cambridge and its affiliated Colleges, Trusts, and Cambridge University Press and Assessment, Dr Richard Anthony, the Bursar of Jesus College, proposed a new initiative. His idea was to launch a Request for Proposals (RfP) for cash products, such as deposits and money market funds, which do not support the expansion of fossil fuels.
The BEF invited other UK Higher Education Institutions (HEIs) to join this project, and the response has been overwhelmingly positive. As of late 2024, the RfP has 71 HEI signatories, including the Universities of Oxford, Bristol, Edinburgh, and University College London, as well as the support of sector organisations such as the British Universities Finance Directors Group (BUFDG). The RfP also attracted 23 proposals from banks and asset managers.
The signatory institutions are particularly focused on avoiding financing companies that are building new coal and gas power plants in developed countries (OECD countries), as these can lock in decades of fossil fuel demand and greenhouse gas (GHG) emissions. The RfP also directs funding towards the construction of renewable energy sources. Since fossil fuels are responsible for over 75% of global GHG emissions, projects like these are crucial.
Designing the RfP process involved two parts: focusing on cash deposits with banks, and cash investment products for asset managers. The BEF used academic research to ensure the project balanced engagement and divestment, while benefitting from the urgency of an RfP process. The initiative has gained widespread media coverage, including articles in the Financial Times, The Guardian, and The Telegraph. In October 2024, Cambridge Head of Group Treasury, Heather Davis, accepted the Association of Corporate Treasurers' 2024 ‘Sustainability Impact Award’ and ‘Sustainability in Large Corporate’ Award for the RfP project.
The success of this project shows the power of collaboration within the HEI sector and highlights the growing demand for financial products that support sustainability. With the RfP coming to a close in early 2025, it is set to influence both the financial industry and global climate action, demonstrating the leadership role universities can play in driving sustainable finance.