Divestment Policy

Policy on divesting investments from carbon-intensive energy sectors such as coal and oil.

Introduction

Al-Ahliyya Amman University (AAU) upholds a responsible investment philosophy aligned with global sustainability principles and SDG7 – Affordable and Clean Energy. The University’s Divestment Policy ensures that all financial decisions avoid supporting carbon-intensive energy sectors, including coal, oil, and other fossil-fuel-dependent industries. Instead, AAU prioritizes investments that advance clean energy, green innovation, low-carbon technologies, and environmentally responsible economic development.

This approach reflects AAU’s institutional commitment to climate action, ethical financial governance, and the transition toward a sustainable, low-emission future. The policy is supported by the University’s sustainability governance structure, clean-energy strategies, carbon-reduction commitments, and ongoing efforts to promote renewable-energy systems across all campus operations.

Centers and Departments

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01Finance Department

Ensures all university investments comply with the Divestment Policy by excluding carbon-intensive sectors and prioritizing environmentally responsible financial portfolios.

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02Sustainability and International Ranking Center (SIRC)

Provides oversight, monitoring, and policy alignment to guarantee that investment decisions reflect sustainability goals and clean-energy commitments.

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03Center for Innovation and Entrepreneurship (CIE)

Supports reinvestment in green startups, low-carbon enterprises, and sustainable innovation projects that offer alternatives to fossil-fuel industries.

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04Hourani Center for Applied Scientific Research (HCASR)

Guides ethical investment by producing research in renewable energy, carbon-reduction technologies, and environmentally sustainable systems.

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05Global Engagement Center (GEC)

Promotes international partnerships with institutions and organizations dedicated to clean-energy investment, sustainability financing, and ethical global initiatives.

Activities

01Renewable-Energy Infrastructure Expansion

AAU continuously expands its on-campus solar, wind, and low-carbon energy systems, reinforcing its institutional shift away from fossil-fuel dependency.

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02Electric-Vehicle Education Partnership with KIA Jordan

The partnership supports clean mobility and encourages divestment from petroleum-based transport systems by promoting electric-vehicle innovation.

03Smart-Building Upgrade Program

Energy-efficient upgrades – such as smart automation, efficient HVAC systems, and advanced insulation – reduce operational reliance on carbon-intensive energy sources.

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04Sustainable-Design National Workshops

Participation in national workshops on sustainable architecture and green-building design reinforces AAU’s institutional shift toward environmentally responsible planning.

05Campus Green-Landscape & Tree-Planting Initiatives

Tree-planting campaigns enhance carbon absorption and support the broader divestment approach by reducing dependence on carbon-emitting activities and promoting a natural climate-action environment.

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Impact Evaluation & Development Plan

Performance Evaluation

The Divestment Policy is formally documented and integrated into AAU’s financial governance framework.
Investment decisions exclude carbon-intensive sectors and prioritize sustainability-aligned opportunities.
Coordination between financial, academic, and sustainability units ensures consistent compliance with ethical-investment principles.
Renewable-energy integration across campus reinforces the institutional transition away from fossil-fuel dependence.
Awareness within the university community supports acceptance of ethical investment practices.
The divestment approach aligns with AAU’s long-term carbon-neutrality vision and national sustainability efforts.

Development Actions

Action 1: Digitize the investment-review process to ensure transparent screening and verification of divestment compliance. Action 2: Publish an Annual Ethical Investment and Divestment Report highlighting progress, exclusions, and reinvestment outcomes. Action 3: Provide training for finance and administrative staff on responsible investment, sustainability financing, and green-economy principles. Action 4: Establish a consultation platform allowing stakeholders to propose clean-energy investment opportunities and sustainability-aligned innovations. Action 5: Develop performance indicators to track divestment effectiveness, sustainability alignment, and long-term impact on institutional carbon reduction.
Benchmarking & Best Practice
Adopted Global Best Practices:
- Modeled on international ethical-investment standards and divestment frameworks adopted by leading universities worldwide.
- Aligned with global clean-energy financing principles and sustainable-development guidelines.
Localization to Jordan’s Context:
- Compliant with national financial regulations, ethical-investment rules, and Jordan’s renewable-energy and sustainability strategies.
- Reflects local economic priorities and the national shift toward low-carbon energy systems.
Future Goal (By 2028): AAU aims to establish a fully transparent, ethically aligned, and globally benchmarked divestment portfolio supporting clean energy and sustainable development. Institutional Integration Summary The Divestment Policy is fully embedded within AAU’s financial governance and sustainability frameworks. By excluding carbon-intensive sectors, prioritizing renewable-energy investments, and promoting sustainable innovation, the University supports a responsible financial model aligned with SDG7 and SDG13. This policy strengthens AAU’s commitment to clean energy, climate action, and ethical resource management while positioning the institution as a national leader in sustainable and responsible investment.