Investment activities

LUT-korkeakoulujen sijoitustoiminta
The investment activities aim to make LUT’s and LAB’s investments profitable – taking responsibility into consideration.

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. 

Division of investments 31 December 2024

61.5 %

Equity investments

17.0 %

Fixed income funds

21.5 %

Alternative investments

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’ climate goals and the UN’s Sustainable Development Goals (SDGs). LUT University and LAB University of Applied Sciences aim to be carbon neutral by 2030. In addition, LUT is committed to the Race to Zero Universities’ initiative, which commits to a net-zero goal by 2050.

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.
 

Status as of 31 December 2024

19.3

Sustainability risk (global benchmark index 21.3)

79.0

Weighted carbon intensity (global benchmark index 106.0)

75.4 %

ESG coverage
 

LUT Universities report on the sustainability risk and weighted carbon intensity of their investment portfolios through Sustainalytics. The sustainability risk and weighted carbon intensity are clearly lower than the benchmark index. The ESG coverage relates the percentage of equity investments with a Sustainalytics ESG rating.

Sustainable development and responsibility at LAB University of Applied Sciences

Read more

LUT Universities´investment strategy LAB University of Applied Sciences' Annual report 2024 (pdf) LAB University of Applied Sciences Investment activities report 6/2024 (pdf) LAB University of Applied Sciences Annual report 2023 (pdf) LAB University of Applied Sciences Annual report 2022 (pdf)